MUMBAI: Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday urged financial technology (fintech) companies to form a self-regulatory organisation for an orderly growth of the industry that is projected to have revenues of $200 billion by 2030.
Addressing the industry at the Global Fintech Fest in Mumbai, Das said fintech players need to evolve industry best practices to avoid misselling, stress on ethical practices, pricing transparency and take care of privacy and data protection concerns. “I would like to use this opportunity to urge and encourage the fintechs to establish a self-regulatory organisation or SRO themselves.
From the RBI, we are willing to engage with you,” Das said while delivering the keynote address at the Global FinTech Fest (GFF) 2023. “It (SRO) will give you (fintech) an opportunity to voice your requirements more frequently to the SRO. The other advantage is that all the aspects of regulation will not be burdened on the RBI,” he added. Das said he was hopeful that the fintech industry would have either formed or be close to launching an SRO by the time of the next GFF event in 2024.
The Indian fintech industry is projected to generate around $200 billion in revenue by the year 2030 and could potentially contribute to approximately 13 per cent of the global fintech industry’s total revenue.
Das said the current industry projections underscore the increasing significance of the country’s rising fintech sector. The global fintech sector, currently generates about 245 billion US dollars of annual revenue, which is merely two per cent of the global financial services revenue, according to the RBI Governor. ‘’It is estimated to reach $1.5 trillion in annual revenue by 2030. The Indian fintech industry is projected to generate around $200 billion in revenue by the year 2030,’’ said Das.
Das also highlighted that digital transactions in India increased from 1.2 billion in 2014 to 90 billion in 2022. Earlier this year, data from MyGovIndia showed that India has recorded 89.5 million digital transactions in the year 2022. As per the data, India accounted for 46 per cent of the global real-time payments in 2022. Digital payment transactions in India are more than the other four leading countries combined.
In digital payments, India has been witnessing new milestones, in both value and volume terms, which indicate the robustness of India’s payment ecosystem and acceptance. Additionally, the central bank is planning to test some more use cases in the wholesale pilot of central bank digital currency (CBDC), according to Das. “Now we are planning to test some more use cases in a wholesale pilot of CBDCs,” said the RBI Governor. He added that CBDCs need to be introduced in a non-disruptive manner.
Significance of the fintech sector rising: Das
The current industry projections underscore the increasing significance of the country’s rising fintech sector. The global fintech sector, currently generates about 245 billion US dollars of annual revenue, which is merely two per cent of the global financial services revenue, according to the RBI Governor
