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.