NewKerala.com

India's Digital Finance Leap: Global Summit Exports UPI Success Story

The Global Inclusive Finance Summit has transformed from a local microfinance event into a global platform for sharing India's digital financial inclusion strategies. A key official highlighted the pivotal role of the Pradhan Mantri Jan Dhan Yojana and the JAM Trinity in propelling India ahead. India's digital public infrastructure, particularly UPI, is now recognized as one of the best globally, with transaction volumes exceeding those in many developed countries. The summit now aims to export this successful model to other emerging economies while emphasizing critical support for SMEs through easier credit access.

Key Points: India Leads Global Financial Inclusion with Digital Infrastructure

  • Summit evolved from local microfinance to global platform
  • Jan Dhan Yojana and JAM Trinity were key inflection points
  • India's digital public infrastructure hailed as world-class
  • UPI transaction volume surpasses many developed nations
  • Focus on SME credit access for national economic growth
2 min read

Global Inclusive Finance Summit highlights India's leadership in digital public infrastructure

Global summit highlights India's journey from microfinance to world-leading digital public infrastructure, sharing the UPI and Jan Dhan model with emerging economies.

"India has stride up, has gone way ahead in financial inclusion. - Sudipto Saha"

New Delhi, January 13

The Global Inclusive Finance Summit has transitioned into a global platform to facilitate the exchange of financial inclusion strategies between India and emerging economies. This evolution marks a shift from the summit's local origins in 2004 to a global mission focused on sharing India's digital public infrastructure experiences with developing nations.

Speaking to ANI, Sudipto Saha, VP, Financial Inclusion, ACCESS Development Services, stated that the summit began in 2004 during the microfinance boom, focusing on Self-Help Groups (SHG) and microfinance models. The trajectory of the event changed significantly in 2014 with the introduction of the Pradhan Mantri Jan Dhan Yojana.

"We re-transformed this particular summit to inclusive finance summit," Saha said, noting that the inclusion of banks, small finance banks (SFBs), and fintechs became central to the discourse. By 2023, the summit expanded its scope to a global level. Saha explained that with the "advent of Jandhan Yojana, the Jam Trinity as such, Jandhan, Aadhaar and mobile, now India has stride up, has gone way ahead in financial inclusion."

The current objective of the summit involves exporting the "India story" to other growing economies. Saha identified the digital public infrastructure developed by India as "one of the best in the whole world," providing a basic premise for the country's advancement in digital payments. He noted that the volume and number of UPI transactions in India now surpass those seen in many developed countries.

Discussing the primary drivers of this progress, Saha pointed to two critical factors. "Main important factor I would say is one, the government which is taking such initiatives to make it happen. And second is the digital infrastructure which has been developed," he said.

This infrastructure serves as the platform for both payments and the upcoming Unified Lending Interface (ULI), which is expected to be replicated across the country following its pilot phase.

The summit also addressed the role of small and medium enterprises (SMEs) in the domestic economy. Saha highlighted that these enterprises constitute approximately 60 to 70 per cent of the entire portfolio. He emphasized that providing these businesses with "easy loans" and "cheaper credit with market access" remains essential for their expansion.

According to Saha, ensuring entrepreneurs have access to credit is a "positive point for them to grow and expand their business," which in turn supports broader national economic growth.

- ANI

Share this article:

Reader Comments

R
Rohit P
Jan Dhan Yojana was a game-changer. My mother in our village now has a bank account and receives her pension directly. The JAM trinity (Jan Dhan, Aadhaar, Mobile) actually works on the ground. Hope the summit helps other countries replicate this success.
D
David E
As someone working in fintech, India's digital public infrastructure is indeed world-class. The volume of UPI transactions is staggering. The key now is to ensure this "India story" export includes robust data privacy frameworks for other nations.
A
Anjali F
Focus on SMEs is crucial. My small tailoring business got a loan much easier last year through a fintech app linked to these systems. Cheaper credit and market access can transform lakhs of small businesses. More power to this initiative!
S
Suresh O
While the progress is commendable, we must also talk about the challenges. Digital literacy in rural areas is still a hurdle. And sometimes, the focus on numbers (transaction volume) overshadows the need for financial literacy to prevent debt traps.
K
Kavya N
It's amazing to see a summit that started with microfinance in 2004 now guiding the world. The Unified Lending Interface (ULI) sounds promising. Hope it simplifies loans for the common person as much as UPI simplified payments. Jai Hind!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50