New Delhi:
Finance Minister Nirmala Sitharaman on Tuesday said there should be no compromise on data privacy and safeguard of client data with an increasing number of Indians now using the digital mode of payment.
Addressing the fintech industry, the minister said the value of digital transactions jumped to Rs 6 lakh crore in January-August 2021 from Rs 4 lakh crore and Rs 2 lakh crore in 2020 and 2019, respectively.
"In 2021, from January till the end of August 2021, in just eight months, we have a total of 355 crore individual transactions, which is six lakh crore worth transactions through digital payments.Fintech adoption rate India is 87 per cent whereas a global average is only 64 per cent,"," she added.
Sitharaman said every section of people is benefiting from the adoption of technology.
''Data privacy is one of the things which is very important and it is an issue on which there can be a lot of contentious views. However, basic respect for privacy…as the guiding principle is well appreciated.
''Safeguard of client data, is something which I think is the backbone to bringing trust. Unless my data is safeguarded well I wouldn't want to get into a scheme of things. So that is the guiding principle,'' Sitharaman said at the 'Global FinTech Fest 2021'.
During the event, a report on 'UN principles for responsible digital payments' was launched which outlines guiding principles for the government, users and for industry and businesses. The report also emphasizes including women and their participation in fintech.
''I am very impressed that today the UN principles for responsible digital payments are being launched. It is just the need of the hour. We need … all of us to understand that in our desire to bring in an interoperable system, a system which has to be pushed ahead because of the transparency virtues that it carries, we shouldn't be in a hurry to compromise on any one of these features,'' Sitharaman said.
The minister said the fintech adoption rate is 87 percent in India, as against the global average of 64 percent.
''I think India is the prime destination for digital activities, digital payments,'' she added.
"The government is giving the required push and people are wanting to adapt to it. The push was increased more because of the necessity during the pandemic. QR codes became very popular in villages," she said.
Indian banks have 1.5 lakh 'mitras'. Direct Benefit Transfer (DBT) was enabled through technology and made us confident that relief may be sent to the people within few minutes. In case that money was not credited into the account, the bank Mitras were there to help out. This comfort was there because our the payment system was so mature. Therefore, today you see that fintech is emerging in India," she said.
"Today banks, payment banks, small financial systems are technology-driven. This has helped us during the pandemic. Today, all are using fintech technology and every section of Indian householders are benefitting from it. Fintech startups today are fine-tuning this whole business and updating with new technologies, innovating and the government is promoting them," she added.