Finance Minister Sitharaman Meets Fintech Founders; Reaffirms Government Support for Fintech Sector

June 19, 2025: Union Finance Minister Nirmala Sitharaman on Wednesday reaffirmed the Indian government’s strong commitment to supporting and nurturing the nation’s rapidly expanding fintech sector. Her remarks came during a high-level interaction with leading fintech founders, CEOs, and senior executives, held on the sidelines of the Digital Payments Awards 2025 in the national capital.

The discussions focused on critical issues such as enhancing the ease of doing business for fintech firms and developing robust mechanisms to prevent financial fraud. In a post shared by the Ministry of Finance, Sitharaman assured stakeholders that the government “continue to support the fintech industry,” signalling sustained policy backing for the sector’s growth.

Rural India a Key Growth Frontier, Says Sitharaman

Addressing the gathering at the Digital Payments Awards event, Sitharaman urged fintech companies to explore the untapped potential of rural India. She emphasised that engaging with rural markets should be viewed not just as a corporate social responsibility but as a significant opportunity for driving innovation and sustainable business growth, akin to how FMCG companies expanded into these areas.

Account Aggregator Platform Sees Exponential Growth

The Finance Minister highlighted the rapid adoption of the Account Aggregator (AA) platform, a key pillar of India’s digital financial infrastructure.

• As of FY25, nearly 700 entities, spanning banking, insurance, securities, and pensions, have joined the AA ecosystem — a significant rise from just 24 participants in FY22.
• The number of linked accounts has surged to over 15 crore, up from 1.5 lakh in FY22.
• The platform has facilitated loans worth over ₹88,700 crore, benefiting around 1 crore individuals in managing their personal finances.
• This growth has also led to significantly reduced onboarding costs for intermediaries.

“Fintech for the World”: India’s Global Ambition:

Echoing Prime Minister Narendra Modi’s vision of ‘Make in India, Make for the World,’ Sitharaman encouraged Indian fintech innovators to develop solutions with a global outlook.

She stated that Indian fintech innovations have the potential to become global public goods, offering scalable and proven solutions to both developing and developed economies.

“Our players must aim to export our successful models abroad and capture global markets. We have the talent, we have the market scale, and we have the proven solutions,” Sitharaman said.

The meeting was attended by key government officials, including Minister of State for Finance Pankaj Chaudhary and M. Nagaraju, Secretary, Department of Financial Services, underscoring the government’s high-level engagement and strategic focus on the fintech sector’s future. The Indian fintech market is projected to grow to over $400 billion by 2028-29, reflecting an anticipated annual growth of over 30%.

What’s Ahead for the Fintech Sector? 

The fintech sector is expected to experience steady growth, driven by ongoing government initiatives and increasing digital adoption. Rural expansion, the wider adoption of the Account Aggregator system, and a push for global outreach present new opportunities. With the right support and innovation, fintech firms can play a key role in improving access to financial services across India and beyond.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations