Nirmala Sitharaman, the Union Finance Minister, stated at a gathering sponsored by the Federation of Indian Chambers of Commerce & Industry that the UPI would aim for one billion daily transactions in the following five years (FICCI).
According to the FM, UPI processed 6.28 billion transactions worth 10.62 lakh crore rupees in July 2022, a 7% increase from June. “UPI’s target is to cross 1 billion transactions per day in the next 5 years,” she said.
As a result, in July 2022, UPI executed an average of 202.58 Mn transactions daily. The government aims to raise this figure by roughly 394% over the following five years.
In August 2022, UPI processed 6.58 billion transactions totaling INR 10.73 lakh crore, somewhat more than in July 2022.UPI has recently come under more and more regulatory pressure as the government appears prepared to implement the market share cap beginning in January 2023.
Payment aggregators are opposing the change and have asked the government for additional time to implement it. The National Payment Corporation of India (NPCI) has contacted the government and industry partners to learn more about the implications of the three- to five-year delay that payment aggregators are requesting.
The country needs to plan urgently since the future of fintech is expected to be volatile, uncertain, complex, and ambiguous (VUCA), according to the finance minister, who was speaking at the same event.
She continued, pointing out how widely used technology is, calling the rate of digital adoption among Indians “amazing.”
Speaking on emerging technologies that will affect the fintech industry, Sitharaman noted that artificial intelligence (AI) will play a significant role. “I see a big role for AI in the fintech sector in the detection of fraud, crime and accessing the risks. We will have to ensure personal data security, national and cyber security in our planning,” said Sitharaman.
Sitharaman added that the future of fintech will see a greater emphasis on banking and related services. According to her, account aggregators would be essential, and 21 banks have already adopted the account aggregator method.
On fintech startups in the country, Sitharaman said that there is a visible link between startups, fintech and private equity. “Private equity is pushing them (startups) quickly in the path of progress,” she said. There are more than six thousand active fintech startups in the country, including 22 unicorns.
At an NPCI-organized event yesterday (September 20), Prime Minister Narendra Modi also discussed fintech. According to him, inclusive innovation has helped the nation become a global leader and investment hub for financial startups.
Shaktikanta Das, governor of the Reserve Bank of India (RBI), introduced three fresh fintech initiatives at the same event. These include Bharat BillPay Cross-Border Bill Payments, UPI LITE, a low-value transaction-focused solution, and RuPay credit cards on the UPI network.