On Friday, Prime Minister Narendra Modi announced that the government is making policy changes, including the elimination of Angel Tax, to support the growth of the fintech sector.

He urged regulators to take extra steps to prevent cyber frauds, which could severely impact startups. Modi praised fintechs for democratising financial services and highlighted their role in attracting USD 31 billion in investment over the past decade, as well as their impact on reducing the parallel economy.

Prime Minister Modi addressed the Global Fintech Fest (GFF) 2024, organised by the Payments Council of India, the National Payments Corporation of India, and the Fintech Convergence Council.

He noted that the domestic economy and capital market are in a celebratory mood, coinciding with the nation’s festive period.

Modi emphasised that the government is making key policy changes to support the fintech sector, such as removing the Angel Tax, allocating Rs 1 lakh crore for research and innovation, and implementing the Digital Personal Data Protection Act.

He stated that fintech has significantly weakened the parallel economy, crediting the rise of transparency.

He highlighted that digital technology, like Direct Benefit Transfer in government schemes, has introduced transparency and prevented system leakages, helping people see the advantages of joining the formal banking system.

Modi also noted that Jan Dhan, Aadhaar, and Mobile have shifted the mindset from ‘Cash is King’ and now account for about half of the world’s digital transactions. He highlighted that India’s UPI is a global example of fintech, enabling 24/7 banking services everywhere.

He emphasised fintech’s role in democratising financial services, citing easy access to loans, credit cards, investments, and insurance. Modi mentioned the PM SVANidhi scheme, which provides street vendors with collateral-free loans, as an example of fintech’s impact on expanding businesses.

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