M Nagaraju, Secretary of the Department of Financial Services (DFS) in the Finance Ministry, has called for a robust push to expand digital payment systems in rural and northeastern regions of India. Unified Payments Interface (UPI) is poised to serve as the cornerstone of this transformation.
Highlighting the role of digital payment infrastructure in driving fintech growth, Nagaraju emphasized the importance of leveraging digital footprints for lending to micro, small, and medium enterprises (MSMEs). This approach will unlock potential for the fintech sector in underserved regions.
Nagaraju made these remarks during a meeting with Fintech Ecosystem Partners held in the national capital on Tuesday. Attended by senior representatives from the Reserve Bank of India (RBI), the National Payments Corporation of India (NPCI), the Financial Intelligence Unit-India (FIU-IND), the Ministry of Electronics and Information Technology (MeitY), and around 60 fintech founders and associations, the session fostered dialogue on advancing the fintech landscape to global standards. 
The Secretary acknowledged the remarkable growth of India’s start-up and fintech sectors over the past decade and stressed the need for fintech companies to innovate while consistently adhering to regulatory standards.
Government and Regulatory Efforts to Support Fintechs
Nagaraju outlined the government’s initiatives to create an enabling ecosystem for fintechs, with foundational technologies like Aadhaar, UPI, and Aadhaar-enabled Payment Systems (AePS) as key enablers. Additionally, frameworks such as regulatory sandboxes, the fintech repository, and self-regulatory organization (SRO) frameworks have strengthened the fintech ecosystem in India.
The RBI detailed its efforts, including creating an Emerging Tech and Fintech Repository for secure and confidential information management. Other notable initiatives include the introduction of the Unified Lending Interface (ULI) and encouraging non-banking financial companies (NBFCs) to join the platform. The RBI also explores video-based KYC projects and conducts regular fintech ecosystem engagements to address emerging opportunities and challenges.
This collaborative exchange reaffirmed the government’s commitment to fostering financial inclusion through innovation. It focused on rural and underserved regions to ensure that fintech becomes a transformative force across all segments of society.
