Financial institutions should prioritize developing offline payment methods: M Nagaraju's suggestion
In a recent address, M Nagaraju, Financial Services Secretary, highlighted key areas where fintech companies should focus their innovation efforts to drive financial inclusion and ensure consumer protection.
## Offline Payment Solutions and Voice-Based Authorization
To enhance financial inclusion, especially in areas with limited internet connectivity, Nagaraju urged fintech companies to develop offline payment solutions. He also emphasized the need for voice-based authorization systems to provide secure and user-friendly payment authorization methods for those who may not be comfortable with traditional digital interfaces.
## Robust Cyber Security
Recognizing the importance of consumer protection, Nagaraju called for robust cyber security against fraud and hacking in fintech solutions. He encouraged fintech companies to develop low-cost but effective cybersecurity solutions, along with innovations in tamper-proofing financial applications.
## Cross-Border Payments and Digital Infrastructure
Nagaraju emphasized the need for fintech companies to expand cross-border payment solutions to expand India's digital payment ecosystem globally. He also highlighted the focus on facilitating cross-border payments and leveraging India's digital public infrastructure, such as UPI, Aadhaar, and more, to drive financial inclusion and improve international transactions.
## UPI Expansion
In a significant move, plans are underway to launch UPI in more countries this year, cementing India's role in the global digital payments landscape. Currently, UPI is accepted in seven countries.
## Government's Commitment to Financial Inclusion
Nagaraju reaffirmed the government's commitment to financial inclusion and democratization of credit access. The Reserve Bank of India (RBI) has enhanced the robustness in Aadhar Enabled Payment Systems and made a decision to eliminate pre-payment charges on floating-rate loans for MSMEs.
These initiatives highlight the government's commitment to financial inclusion and the pivotal role fintech plays in achieving this goal while ensuring consumer protection and security. The influence of Indian fintechs has begun to extend beyond national borders, reaching the Global South. Fintech's significant role in advancing financial inclusion in India is evident, with a substantial portion of financial services and loans accessed by fintech being by women, contributing to women's empowerment and inclusive economic growth.
- To further solidify India's role in the global market, fintech companies are planning to expand the use of UPI in more countries this year.
- In aligning with financial inclusion efforts, fintech companies are urged to develop offline payment solutions for areas with limited internet connectivity.
- Recognizing the need for secure methods, it's crucial for fintech companies to implement voice-based authorization systems for user-friendly and secure payment authorization.
- To drive financial inclusion and improve international transactions, fintech companies are encouraged to focus on expanding cross-border payment solutions and leveraging digital public infrastructure like UPI, Aadhaar, and more.
- In a bid to ensure consumer protection, fintech companies are challenged to develop robust cybersecurity solutions to combat fraud and hacking in fintech solutions.
