Digital payments in India are being increasingly adopted by businesses and individual consumers. Online lending platforms are also becoming more popular in the country that’s home to around 1.5 billion residents.
The Reserve Bank of India (RBI) has introduced several initiatives that are aimed at supporting the nation’s $3 trillion formal economy. The RBI, like other central banks across the globe, has been focused on addressing issues related to data privacy and security.
RBI Governor Shaktikanta Das has stated that Fintech firms that maintain active business operations may begin to challenge incumbents.
As first reported by MoneyControl.com, Das noted that the Fintech industry will be presenting a challenge to traditional financial services and may experience “exponential” growth in the coming years. Financial technology solutions for improving customer services should also reduce operational costs and further expand the nation’s banking and non-banking sectors, Das added.
One of the major industry growth contributors will be digital payments and online lending, according to Indian officials.
Das added that many more digital platforms may emerge as key pieces across nearly all market segments in the Indian banking sector. He pointed out that all digital firms may provide their services directly to clients or via established banks serving as their “agents” or “associates.”
While commenting on the banks’ operations, Das said that large national service providers and smaller regional companies would benefit from modern IT systems. This innovative tech infrastructure should be developed to address the “exponential” increase in the number of digital transactions, Das noted.
In another report from local sources, earlier this month, it has been estimated that India’s Fintech sector may be valued as high as $160 billion within the next 4 years.
Major crypto firms have also announced plans to work with Indian players. Recently, digital asset marketplace Coinbase revealed that it will be hiring tech professionals in India. This, despite the nation’s authorities not having a clear stance on how they intend to regulate cryptocurrencies such as Bitcoin.
Coinbase isn’t the only foreign company to support India’s crypto initiatives. Leading digital assets firm Binance had acquired Indian virtual currency exchange WazirX, meanwhile, Block.one, a major blockchain firm, has invested millions of dollars into the operations of CoinDCX, a local Indian crypto exchange.