India’s fintech market likely to grow to 6 lakh crore

New Delhi, Feb 26: Our effort is to encourage private enterprises wherever possible. However, the country needs effective participation of the public sector in banking and insurance, Prime Minister Narendra Modi said. The PM was addressing a webinar on budget proposals (financial sector).

There is still great scope for the banking & insurance sectors in our economy. Keeping this in mind, we have taken many steps in this Budget- be it our decision to privatise two PSBs, raising FDI limit to 74 per cent in insurance or our decision to bring LIC IPO, the PM also said. The government is committed to strengthening the banking sector and reforms will continue, PM Modi also said.

Today 130 crore people in the country have Aadhaar cards and more than 41 crore people have Jan Dhan accounts. Of the 41 crore Jan Dhan bank accounts, 55 pc belong to women and have Rs 1.5 lakh crore deposits.

Our Fintech Startups are doing excellent work today and exploring every possibility in this sector.They have a very high share in the Start-Up Deals that have taken place in the Corona era as well, the Prime Minister also said. India's fintech market likely to grow to Rs 6 lakh crore, the PM also added.

We are willing to stand by decisions taken with right intentions; govt understands not all business ventures will be successful, the PM said on the lending norm.

Our endeavour is to promote private sector business but public sector banks and insurance sector have an important role in the country, As economy grows, credit flow to new entrepreneurs and businesses have to increase, products have to be tailored for fintech, startups, PM Modi also said.

Our start-ups and MSMEs would be the identity of Aatmnirbhar Bharat that is why special schemes were formulated for MSMEs during the COVID pandemic. Under these schemes, around 90 lakh enterprises have been given credit worth Rs 2.4 trillion, the PM also said.

With the Mudra scheme itself, loans worth about Rs. 15 lakh crore have reached the small entrepreneurs. About 70 percent are women and more than 50 percent are Dalit, deprived, tribal and backward class entrepreneurs, the PM said.