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Prime Minister Modi calls on fintech sector to expand global use of UPI and reduce money transfer costs
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Business Standard
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Prime Minister Modi calls on fintech sector to expand global use of UPI and reduce money transfer costs

Prime Minister Narendra Modi addressed the financial technology ecosystem with a call to increase the international presence of the UPI system, integrate it with local payment systems in other countries, and help the diaspora save on money transfer costs.

During his speech after the opening of the seventh Global Fintech Festival, Modi noted that the UPI platform is already operational in 11 countries and is successfully connected to Singapore's local system.

The Prime Minister urged the industry not to rest on the achievements of the past decade, when UPI became a ubiquitous platform for instant domestic payments, but to focus on further expanding UPI's reach.

He emphasized that efforts should be directed towards countries with a large Indian diaspora that has significant trade turnover with India, or those willing to partner and integrate systems.

Modi explained the importance of this step by stating that Indians work in large groups abroad and are the largest remitters of funds. He added that some of these transfers are lost due to transaction costs, and UPI can help reduce these expenses by allowing money to reach families faster.

Furthermore, he noted that global card payments are currently made through systems developed in other nations, but India now has an indigenous alternative. 'We can set our own rules and standards and connect them to the world,' said Modi.

Echoing the words of French President Emmanuel Macron, the Prime Minister stated that UPI represents not only a technological but also a civilizational story. He suggested that following numerous successes in payments in recent years, the next chapter for the Indian fintech industry should be related to non-payment transactions.

Finally, the Prime Minister strongly requested the fintech community to develop high-quality cybersecurity solutions, establish ethical data protection standards, and highlighted the need to create a regulatory ecosystem for fintech, as well as a consumer rights protection index for fintech that would allow each company to be assessed based on its level of transparency.

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Modi called on India to establish its own standards for cross-border payments and integrate the system with global financial markets
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timesofindia.indiatimes.com

Modi called on India to establish its own standards for cross-border payments and integrate the system with global financial markets

Narendra Modi called on India on Tuesday to develop its own protocols and standards for making cross-border payments. He also proposed directly linking the country's payment system with countries where a significant Indian diaspora resides and where trade volumes are high.

Modi noted that India now possesses a sovereign alternative to the foreign standards underpinning the existing card payment architecture and can connect this system to the global financial infrastructure. He emphasized that such a move could reduce the cost of money transfers, as Indians abroad send the largest volume of funds home but lose a substantial portion due to transaction fees. According to Modi, 'UPI can provide significant savings in this area, allowing funds to reach Indian families faster.'

These statements came just before the BRICS summit, where expanding trade in national and local currencies is a priority. The proposal discusses the possibility of ensuring operational compatibility of retail and trade settlement systems by linking UPI to similar networks in other countries. India is seeking ways to reduce dependence on the dollar in intercurrency trade, while BRICS has so far avoided direct mention of the dollar, and the 2025 declaration calls for finding 'acceptable financing mechanisms in local currencies.'

The Prime Minister stated that such integration has already been implemented with Singapore, resulting in cross-border operations between India and Singapore running as smoothly as transfers between neighboring districts within one city. He insists on the need to replicate such integrations in other countries and on international markets.

Speaking at the Global Fintech Festival for the third consecutive time, Modi reported that India demonstrated growth of 7.8%, despite pressure on energy and raw material supply chains and escalating trade tensions. He also mentioned India's upgrade to Category A by a Japanese rating agency, which was a major milestone after three decades. Modi noted that this reflects the world's growing confidence in the structural reforms undertaken in recent years and confirmed that 'India's 'Express Reforms' will move even faster.'

Furthermore, the Prime Minister called for strengthening cybersecurity, implementing industry-led ethical data protection standards, creating an innovative ecosystem that unites regulators and industry, and developing a consumer protection index in fintech with clear and transparent ratings. He also added that the sector should diversify beyond payments, expanding into credit, insurance, savings, investment, and pension products.

Highlighting that the Global Fintech Festival coincided with the 10th anniversary of UPI, Modi noted that people who were excluded from the formal banking system for generations are now driving fintech growth. He mentioned that the SVANidhi credit cards allowed street vendors to enter the formal credit system by providing them with a verifiable access tool. Studies have shown that the average annual income of PM SVANidhi beneficiaries increased by more than 20%.

In conclusion, noting that besides energy fintech, the cultural energy of Mumbai is also peaking due to the upcoming Ganesh Chaturthi celebrations, Modi extended warm wishes. Attending the annual festival for the third time, Modi remarked that this would be his second 'triumphant victory'—the first being in 2024 when the NDA formed the government for the third time.

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