Sitharaman Calls on Fintech Startups to Develop Solutions Against Cyberfrauds and Digital Arrests

Finance Minister Nirmala Sitharaman urged fintech startups to develop solutions to combat increasing digital arrests and cyberfrauds. She praised fintechs for advancing financial inclusion and extending payment systems to remote areas. Speaking at the Digital Payments Awards 2025, she highlighted the need for startups to prevent digital home arrests and protect against fly-by-night operators.

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Another significant threat identified by Sitharaman is deep fake technology, which is causing widespread harm. She emphasised the necessity for fintech companies to continuously innovate solutions for emerging challenges. Additionally, she encouraged the fintech sector to expand digital lending services, particularly to support the MSME sector.

Fintech Innovations and Global Opportunities

Sitharaman noted that Indian fintech innovations could become global public goods, benefiting both emerging and developed economies. This potential opens new markets for Indian firms. Currently, international merchant payments via UPI are accepted in seven countries, including Bhutan, France, and Singapore.

The Finance Minister urged Indian players to export successful models abroad and capture global markets, highlighting India's talent, market scale, and proven solutions. She stated that this would create new opportunities for domestic firms.

Growth Projections and Financial Inclusion

The Indian fintech market is expected to exceed USD 400 billion by 2028-29, with an annual growth rate of 30 per cent. Sitharaman expressed confidence in the sector's future, urging stakeholders to "Innovate, Include, and Inspire." She encouraged innovation in solutions, inclusion of all citizens, and inspiring global achievements.

India now accounts for nearly half of all real-time digital transactions worldwide. Direct Benefit Transfer (DBT) has saved significant funds by reducing leakages. Since 2014, approximately Rs 44 lakh crore have been transferred through DBT, saving Rs 3.48 lakh crore.

Unique Momentum in Indian Fintech Sector

Sitharaman highlighted India's rapid innovation pace as a dream for many countries. Advanced nations lag behind India's fintech momentum in progress and creating new paradigms. This uniqueness defines the Indian fintech sector's achievements.

A World Bank study revealed that India achieved an 80 per cent financial inclusion rate in six years through Digital Public Infrastructure (DPI). Observers noted this feat would have taken nearly 50 years otherwise.

The Finance Minister's remarks underscore the immense potential of India's fintech industry. With continued innovation and global outreach, the sector can significantly impact both domestic and international markets.

With inputs from PTI