• UGI USER
  • Feb 21, 2024
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THE RECENT REPORT ON LOCAL FINTECH PLAYERS

Why in the news?

  • The report highlights concerns raised by the Standing Committee on Communications and Information Technology regarding the dominance of foreign-owned fintech companies in India’s digital payment landscape.
  • It underscores the need to promote and empower local fintech players.
Source: scoreme

National Payments Corporation of India’s Actions:

  • NPCI imposes 30% volume cap on UPI transactions to address dominance concerns, later extending compliance deadline to 2024.
  • Move aims to maintain market equilibrium and encourage growth of UPI by fostering competition among players.
What is Fintech ?

·    “Fintech” refers to innovative technology aimed at enhancing and automating the provision and utilization of financial services.

·    Fintech facilitates easier access to capital for MSMEs, addressing the significant credit gap they face.

Government Initiatives Driving Fintech Growth

·    Jan Dhan Yojana:

  • Enrolled 450+ million beneficiaries for financial inclusion.
  • Provides access to services like remittances and insurance, fueling Fintech growth.

·    India Stack:

  • Offers APIs for digital service delivery.
  • Accelerates Fintech evolution by providing a digital infrastructure.

·    UPI:

  • Facilitates seamless fund transfers between bank accounts.
  • Drives Fintech revolution with billions of transactions monthly.

·    Digital Rupee (CBDC):

  • Aims to digitize cash transactions.
  • Expected to boost Fintech market growth and innovation.