 "UPI, UPI payments, UPI payment")
For the first time, UPI transactions crossed 100 billion and closed at 131 billion in FY24, compared to FY23. (Photo: Shutterstock)
There is a need to continuously identify regulatory gaps in the fintech sector and benchmark rules against global best practices, says Economy 2024 released on Monday.
The observation comes as the country embraces emerging technologies such as artificial intelligence and machine learning (AI/ML), decentralized finance and the Internet of Things (IoT).
Indian fintech is evolving and the adoption rate of new technologies in financial services is high, and they are supported by the rails of Digital Public Infrastructure (DPI).
DPI, also known as India Stack, comprises fundamental blocks of digital identification and payment infrastructure such as Aadhaar, digital payments through Unified Payments Interface (UPI) and account aggregation framework.
“These DPIs can be used in a shared manner by different actors to ensure optimal results. Their use has brought transparency, large-scale operation and rapid provision of financial services to the public,” the survey said.
Public and private sector finance companies need to become customer-centric. “A common approach to user data, such as Know Your Customer (KYC), should be developed by regulators. In the medium term, efforts should be made to move towards data-driven rather than judgment-driven lending, particularly for smaller businesses,” the survey said.
Calls for India to become a fintech nation and a leader in innovation in the financial services sector come in the wake of increased adoption of payment services such as UPI run by the National Payments Corporation of India (NPCI).
UPI transactions crossed 100 billion for the first time and closed at 131 billion in FY24.
First published: July 22, 2024 | 1:30 p.m. IST