* UPI operational in many countries reflects not just widespread adoption but emergence of UPI as foundation pillar of India’s digital economy, financial inclusion
* As we step into India’s digital decade, our vision is to push India as a global leader in digital governance where technology empowers every citizen
Mr M Nagaraju, Secretary, Department of Financial Services, Ministry of Finance, Govt of India today said that the India continues to stand out as the bright spot in the world economy despite global headwinds, geo-political conflicts, supply chain realignments along with elevated interest rates. India’s banking and financial system has already demonstrated its ability to transform at scale. The next phase will test our ability to integrate advanced technologies responsibly, secure systems against threats, protect citizen data and expand access while maintaining stability. “GDP growth rate of 2025-26 is at 7.6 per cent which is higher than 2024-25 when it was 7.1 per cent,” he added.
Addressing the ‘PICUP Fintech Conference & Awards’, organized by FICCI, jointly with IBA, Mr Nagaraju stated that the gross NPAs of public sector banks are at record low level in India at 2.2 per cent and net NPA around 0.5 per cent. Highlighting the important achievement for the government, he added that financial inclusion is central to building a resilient and equitable financial eco-system. Over the past decade, India has emerged as the global benchmark in financial inclusion. “Pradhan Mantri Jan Dhan Yojna is the heart of financial inclusion under which 58 crore bank accounts opened, and half of these account holders are women,” he emphasized.
The PM Jeevan Jyoti Bima yojana and PM Suraksha Bima yojana together, he stated that have enrolled 84 crore beneficiaries and 39 lakh crore loans disbursed under Mudra loan. “Today, as we step into India’s digital decade, our vision is to push India as a global leader in digital governance where technology empowers every citizen. The heart of this is India emerging as a leader of digital public infrastructure including Aadhar, UPI, account aggregator framework, etc.,” noted Mr Nagaraju.
Speaking on the importance of UPI, Mr Nagaraju said that around 22 billion transactions were made last month with total value surpassing Rs 29 trillion. “UPI has emerged as the largest real time retail payment system in the world. India’s digital payment system is now expanding beyond our borders. UPI is operational in many countries and several more are in pipeline. This scale reflects not just widespread adoption but the emergence of UPI as a foundation pillar of India’s digital economy and financial inclusion,” he added.
Highlighting the importance of Fintechs, Mr Nagaraju said that India has today, the largest and fastest growing fintech eco-system in the world. Fintechs companies in India have been instrumental particularly among new to credit and if we can work to integrate technology with policy, innovation, inclusion and growth with responsibility, we will not only transform our economy but also offer a blueprint for the world. We are moving from scale to complexity where expectations are higher, risks are sharper and systems will be tested far more rigorously, he added.
Mr Nagaraju stated three strategies for vision 2030 which includes growth which is deeply financed, widely accessible and sustainably supported. Capital is not merely a resource but an engine of opportunity. Secondly, there is a need to enhance the quality and depth of financial inclusion. “Growth that is not inclusive cannot be sustained over a long period of time. A strong financial system must be capable of supporting growth during favorable times but also withstanding shocks during periods of uncertainty,” he noted.
Speaking on new technology and AI, Mr Nagaraju said that technology will play important role not only in driving innovation but also in strengthening supervision, risk management and fraud prevention. “AI has potential to make financial inclusion not just socially desirable but commercially sustainable. AI must be seen not just as a disruptor but as an enabler of responsible inclusion. Cyber security threats, data privacy concerns, credit and asset quality risk, trust deficit are some challenges which needs to be managed to sustain long-term growth,” he added.
Mr Atul Kumar Goel, Chief Executive, IBA said that over the last few years, we have witnessed a transformation in India’s financial landscape. “Convergence of banks, fintech and digital public infrastructure has enabled us to expand along with improving efficiency and strengthening overall financial architecture,” he added.
Ms Jyoti Vij, Director General, FICCI said that the financial sector is undergoing significant transformation, and the innovation eco-system requires trust, governance, consumer protection, coordination remain critical principles for the momentum to be a sustainable Indian fintech eco-system.
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