Reserve Bank Governor Shaktikanta Das today reiterated that, Bank is fully committed to use all policy tools to secure a robust recovery of the economy from the debilitating effects of the pandemic. He was speaking at the Economic conclave organised by a private media house. He said that, the collective endeavour resulted in stabilisation of the financial sector and provided necessary liquidity support to maintain the flow of credit in the economy.
Mr. Das said, India is on the way to becoming Asia’s top financial technology hub with 87 per cent FinTech adoption rate as against the global average of 64 per cent. The FinTech market in India was valued at Rs. 1.9 trillion in 2019 and is expected to reach Rs. 6.2 trillion by 2025 across diversified fields like digital payments, digital lending, peer to peer (P2P) lending, crowdfunding, block chain technology etc. He said that, Digital payments volume in India increased at a compounded annual growth rate of over 55 per cent in the past five years from 5.9 billion in 2015-16 to 34.3 billion in 2019-20, almost six times in 5 years.
Last year when many other nations were writing cheques to provide stimulus to the people, we, in India, processed 274 crore digital transactions to provide Direct Benefit Transfer (DBT) to the people straight into their bank accounts, He added. He also said that, the emphasis of the Reserve Bank is on operationalising all our payment systems round the clock, 365 days a year. At present NEFT and RTGS systems are working 24×7 and India is among a few countries that provide the facility to transfer any amount at any point of time.
Mr. Das also cautioned that, we need to be watchful of the risks associated with certain technological innovations. RBI is working on introducing a digital version of the fiat currency. Bank is also assessing the financial stability implications of introducing such a Central Bank Digital Currency (CBDC).
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