'UPI targets 1 bn transactions daily in 5 yrs'

NEW DELHI: Finance Minister Nirmala Sitharaman on Tuesday said that technology adoption in India is very high not only at major cities but tier-2 and 3 cities and rural areas also. "Digital adoption by Indian citizen is amazing," she added.

Addressing the session 'Future of Financing' at FICCI LEADS 2022, Sitharaman said that the future of finance is going to be Volatile, Uncertain, Complex and Ambiguous (VUCA) and there is a sense of urgency with which we need to plan. She also stated that the role of artificial intelligence is going to be critical in fintech sector. "I see a big role for AI in fintech sector in detection of fraud, crime and accessing the risks. We will have to ensure personal data security, national and cyber security in our planning," she added.

She stated that India is working on a system where only a single KYC is needed which can be used across different spheres. Speaking on the success of UPI, she said that in July, UPI processed 6.28 billion transactions worth Rs 10.62 trillion, which is 7 per cent higher than June. "UPI target is to cross 1 billion transaction per day in next 5 years," she noted.

She further stated that the future of finance will be driven more and more through banking and related services and Account aggregators will play a crucial role in it.