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Press Release

UPI targets 1 billion transactions daily in next 5 years: Finance Minister Nirmala Sitharaman

Sep 20, 2022

  • Data security our top priority; Need to ensure digital personal security, national security and cyber security with technology intervention

NEW DELHI, 20 September 2022: Ms Nirmala Sitharaman, Minister of Finance and Corporate Affairs, Govt of India today said that technology adoption in India is very high not only at major cities but tier-2 and 3 cities and rural areas. "Digital adoption by Indian citizen is amazing," she added.

Addressing the session 'Future of Financing' at FICCI LEADS 2022, Ms Sitharaman said that the future of finance is going to be Volatile, Uncertain, Complex and Ambiguous (VUCA) and there is a sense of urgency with which we need to plan. She also stated that the role of artificial intelligence is going to be critical in fintech sector. "I see a big role for AI in fintech sector in detection of fraud, crime and accessing the risks. We will have to ensure personal data security, national and cyber security in our planning," she added.

The Finance Minister stated that India is working on a system where only a single KYC is needed which can be used across different spheres. Speaking on the success of UPI, she said that in July, UPI processed 6.28 billion transactions worth Rs 10.62 trillion, which is 7 per cent higher than June. "UPI target is to cross 1 billion transaction per day in next 5 years," she noted.

Ms Sitharaman further stated that the future of finance will be driven more and more through banking and related services and Account aggregators will play a crucial role in it. "Account aggregator system has been adopted by 21 banks including public sector banks," she added.

Ms Sitharaman emphasized that the link between start-ups, fintech and private equity is visible. There are 6,636 start-ups and 21 unicorns in fintech sector and private equity have helped them to become start-up. "Private equity is pushing them (start-ups) quickly in the path of progress," she said.

She also stated we need to make sure that climate risks are not going to hit us because we are talking about a future that is digital.

Mr Sanjiv Mehta, President, FICCI and CEO & MD, Hindustan Unilever Limited said that venture capitalists are convinced that ESG factors play an important role in company's valuation. "Fintech is fostering financial inclusion," he added.

Ms Naina Lal Kidwai, Chairman, Rothschild & Co India and Senior Advisor, Advent Private Equity reinstated the need for global collaboration and partnership in building future for finance.

Mr Richard Abel, Managing Director, UK Climate Investments, Macquarie Group highlighted the importance of gender diversity, equity, and inclusion in Future of Finance.

Dr Ruth P Goodwin-Groen, Founder & Managing Director, UN-based Better Than Cash Alliance, USA stated that there is a huge opportunity in India for creating a future that works for everybody.

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