Nirmala Sitharaman Calls on Fintechs to Develop Solutions Against Cyber Frauds and Digital Arrests

Finance Minister Nirmala Sitharaman urged fintech startups to develop solutions to combat increasing digital fraud, including scams by transient operators. At the Digital Payments Awards 2025, she praised fintechs for advancing financial inclusion and extending payment systems to remote areas. She stressed the need for startups to prevent digital arrests and protect people from losing money to fraudulent schemes.

Minister Sitharaman highlighted deepfake technology as a significant threat causing widespread harm. She called for fintech companies to continuously devise solutions for emerging challenges. Additionally, she encouraged the sector to expand digital lending facilities, particularly for the MSME sector, which is crucial for economic growth.

Fintech Innovations and Global Opportunities

The minister noted that Indian fintech innovations could become global public goods, benefiting both emerging and developed economies. This potential opens new markets for Indian firms. International merchant payments via UPI are now accepted in seven countries, including Bhutan and France, showcasing India's expanding global reach.

Sitharaman emphasized the importance of exporting successful models abroad to capture international markets. She stated, "We have the talent, we have the market scale and we have the proven solutions." The Indian fintech market is expected to exceed USD 400 billion by 2028-29, with an annual growth rate of 30 per cent.

India's Digital Payment Growth

Sitharaman remarked on India's significant contribution to global real-time digital transactions. Direct Benefit Transfer (DBT) has saved Rs 3.48 lakh crore by preventing leakages, with Rs 44 lakh crore transferred since 2014. The rapid pace of innovation in India is unmatched by many advanced countries.

A World Bank study revealed that India achieved an 80 per cent financial inclusion rate in just six years through Digital Public Infrastructure (DPI). Observers noted that this achievement would have taken nearly five decades otherwise.

The Future of Finance: Phygital Approach

On customer service, Sitharaman predicted a "Phygital" future—combining physical and digital elements—to enhance customer service and build trust over time. Minister of State for Finance Pankaj Chaudhary highlighted the foundational role of banks and fintechs in India's digital financial transformation.

Chaudhary pointed out that banks have established infrastructure and trust while fintechs have driven innovation and user-centric design. Together, they have made digital payments a daily reality for many Indians.

Exponential Growth in Digital Payments

Financial Services Secretary M Nagaraju noted the exponential growth of India's digital payments sector in recent years. In FY 2024-25 alone, UPI achieved a remarkable 18,587 crore transactions worth 261 lakh crore. This growth stems from innovation and a focus on user-centric approaches.

Sitharaman concluded by expressing confidence in India's fintech future, stating that its best chapters are yet to be written. She encouraged innovation, inclusion, and inspiration to showcase India's achievements on a global stage.

With inputs from PTI