Digital payments ecosystem transformed governance, financial inclusion in India: PM Modi

Prime Minister Narendra Modi said on Friday that India’s digital payments ecosystem has radically transformed governance, financial inclusion, and the country’s ease of living. The first G20 Finance Ministers and Central Bank Governors (FMCBG) meeting is being held in Bengaluru on Friday with the goal of fostering global economic cooperation. The meeting was co-chaired by Union Finance Minister Nirmala Sitharaman and Reserve Bank of India (RBI) Governor Shaktikanta Das.

In his opening remarks at the meeting via a video message, PM Modi said, “You represent the leadership of global finance and economy at a time when the world is facing serious economic difficulties. The Covid pandemic had delivered a once-a-century blow to the global economy. Many countries, especially developing economies are still coping with its aftereffects. We are also witnessing rising geopolitical tensions in different parts of the world.”

“We need to collectively work to strengthen multilateral development banks for many global challenges, like climate change,” PM Modi said during the meeting.

According to the Prime Minister, Indian consumers and producers are upbeat and confident about the future.

“We hope that you will be able to transmit the same positive spirit to the global economy. I would urge that your discussion will focus on the most vulnerable citizens of the world. Only by creating an inclusive agenda can win back the confidence of the world,” he told the Finance Ministers and Central Bank governors. The PM emphasised that technology is becoming increasingly important in the world of finance.

“However, some recent innovations in digital finance also pose a risk of destabilisation and misuse,” Prime Minister noted.

He claimed that during the Covid pandemic, digital payments enabled contactless and seamless transactions.

“Over the past few years, we have created a highly secure, trusted and efficient public digital infrastructure. Our Digital payments ecosystem has radically transformed governance, financial inclusion and ease of living. India’s UPI ecosystem can be a template for many other countries. We would be happy to share our experiences with the world. G20 can be a medium for this,” PM Modi said.

He further said, “During our G20 presidency, we have created a new Fintech platform, which allows our global G20 guests to use India’s path-breaking digital payment platform UPI.”

PM Modi has called for a collaborative effort to strengthen multilateral development banks in order to address global challenges such as climate change and others.

“I hope that you will explore how the power of tech can be used for good while developing standards to regulate its possible risks. India’s own experience can be a model,” he added.