Blurb: ‘India’s economy remains strong, with GDP growth estimated at 7.6% for 2025-26’

New Delhi

Banking Secretary highlights AI’s dual role in fintech, urging responsible use while noting strong growth, financial inclusion gains, and India’s rising global leadership in digital payments.

India’s fintech sector is entering a new phase marked by higher expectations, growing risks, and complex systems, said M Nagaraju, Secretary of the Department of Financial Services, on Thursday.

Speaking at a fintech conference organised by FICCI, he described artificial intelligence as both a threat and an opportunity for the industry. He urged companies to use AI responsibly while exploring its full potential.

Looking ahead to Vision 2030, Nagaraju said AI will support financial inclusion by enabling smarter credit assessment. Tools using digital data like transactions, GST records, and telecom inputs can help lenders reach first-time borrowers and small businesses with better risk control.

He added that India’s economy remains strong, with GDP growth estimated at 7.6 per cent for 2025-26. Banking sector health has also improved, with gross non-performing assets falling to 2.2 per cent and credit growth rising sharply.

Financial inclusion continues to expand through schemes like Pradhan Mantri Jan Dhan Yojana, which has opened nearly 58 crore bank accounts. Other initiatives such as Pradhan Mantri Mudra Yojana and PM SVANidhi have supported small businesses and street vendors.

Nagaraju also highlighted the success of Unified Payments Interface, which handled over 22 billion transactions last month, making it the world’s largest real-time payment system.

He said India’s digital and financial progress positions it strongly for future growth, but stressed that responsible innovation will be key to balancing risks and opportunities in fintech.