Fintech Drives Financial Inclusion: Meity Director Vageesh Tiwari

Fintech is the most significant enabler for financial inclusion, ensuring the last mile seamless connectivity, said Vageesh Tiwari, Director, Digital Governance Division, Ministry of Electronics and Information Technology (Meity) in an exclusive interaction with BW Businessworld on the sidelines of Fintech Festival India.

Tiwari also mentioned that fintechs have exponentially increased access to finance.

He also highlighted, “Now, fintech is not only a service-enabling tool but also an emotion. Along with this, digital inclusion is leading to financial inclusion.”

Citing the examples of financial inclusion, Tiwari said, “To name a few real-life scenarios, fintechs are letting a woman in Rajasthan live a dignified life. A boy in Assam can get a quality education due to Fintech services. And, this is what fintechs have done in recent years.”

He also highlighted the penetration of fintechs and the way they are changing the transaction landscape altogether.

“Fintech is beyond merely a technology. 800 transactions are taking place every second in India. Our nation has achieved 80 per cent of financial inclusion due to the fintech sector within eight years which would have otherwise taken 47 years,” Tiwari mentioned.

Director of Digital Governance from Meity further added that the technology has enabled microfinance institutions (MFIs) which in turn has helped women entrepreneurs and women self-help groups (SHGs).

Tiwari highlighted, “Open API policy has been introduced by Meity to promote software interoperability for all e-governance applications and systems, provide access to data and services for promoting the participation of all stakeholders including citizens. Open API provide access to data and services, promote citizen participation and set up an ecosystem for publishing APIs by all government organisations.”

Tiwari further told BW Businessworld that Open API enables quick and transparent software integration with e-governance applications and systems.

Tiwari said that Meity has also set up a collaboration platform for fintechs called ‘Bharat Virtual Accelerator’.

“MeitY has initiated cohort-based Accelerator Programmes so as to bring in seed investment, mentorship, industry connect and relevant components. Cohort-based Accelerator Programmes offer an intensive, constructive, support system to a competitively selected group of cohort firms in their quest for self-reliance,” Tiwari added.

He also demonstrated how Bhashini, a National Public Digital Platform for languages can be helpful for financial inclusion in the far-flung areas. Tiwari said that Bhasini can be integrated with Unified Payment Interface (UPI) and conversational AI-based payment by the Reserve Bank of India (RBI) which will further enable financial inclusion.

However, he also cautioned that there has also been illicit use of fintech but the government is taking significant steps to tackle cyber frauds and cybercrimes.

The industry is ready talented and equipped. The government is supporting fintech. “Therefore there is no one who can stop India from becoming a fintech giant,” Tiwari emphasised.