FinTech's Crucial Role in India's Financial Literacy and Consumer Safety

During the CII Financial Inclusion and FinTech Summit, Department of Financial Services Secretary M Nagaraju urged the FinTech sector in India to prioritize financial education and consumer protection amidst the nation's digital evolution. Nagaraju underscored the FinTech industry's potential to inform millions of Indians about financial services and protect them from cyber fraud, citing a significant number of individuals who fall prey due to insufficient financial literacy.

In his address, Nagaraju called on FinTech companies to leverage innovative and user-friendly systems to prevent fraud and ensure vulnerable consumers are shielded from exploitation. He stressed the necessity for consumer protection to become a central objective, advocating for fair treatment of FinTech users, proper handling of complaints, and shielding them from fraudulent activities. Nagaraju pinpointed several focus areas for innovation, such as creating offline payment solutions, voice-based authorization systems, enhancing network coverage, facilitating cross-border transactions, and developing cost-effective cybersecurity measures to fortify application security.

Nagaraju's comments followed India's notable advancements in financial inclusivity. He reported that the nation now boasts approximately 55 crore Jan Dhan accounts, with women holding 56 percent, and 90 percent of the adult population possessing bank accounts. The availability of banking services has reached 99.9 percent of villages. He also praised the achievements of significant government financial schemes, including the PM Mudra Yojana, which has sanctioned 53.5 crore loans totaling Rs 34.6 lakh crore, with 68 percent benefiting women entrepreneurs. The Stand Up India Scheme and the PM Swanidhi scheme further underscore the government's dedication to inclusive financial growth, presenting abundant opportunities for FinTech innovation.

(With inputs from agencies.)