Expand financial inclusion using AI: DFS secy M Nagaraju to fintechs

At the CII summit, DFS Secretary M Nagaraju said fintechs must widen access to finance and develop AI-led tools to combat cyber threats and support rural economic growth

Department of Financial Services (DFS) Secretary M Nagaraju on Monday urged financial technology companies (fintechs) to leverage their strengths and innovation by not only extending financial services to the masses but also by developing robust solutions against fraud, hacking, and other cyber threats, making greater use of emerging technologies like artificial intelligence (AI).

 

“There is a critical role of fintechs in advancing financial inclusion and consumer protection,” Nagaraju said during the inaugural session of the third Financial Inclusion and Fintech Summit organised by the Confederation of Indian Industry (CII) in New Delhi. 

The DFS secretary also highlighted that financial inclusion is increasingly recognised as a major factor in economic growth and poverty alleviation on a global scale. 

 

He pointed out that seven of the 17 United Nations Sustainable Development Goals (UNSDGs) are directly connected to financial inclusion. This suggests the importance of improving access to financial services for the unbanked and underserved populations, he said. 

To illustrate progress made in India, he recalled data from before 2014, when only about 35 per cent of adults in India had access to a bank account, as estimated by the Global Findex Database. 

 

Nagaraju further highlighted the government's sustained efforts in fostering a supportive ecosystem for fintech innovation, underpinned by a strong digital infrastructure and transformative welfare schemes. Notable among these are the Jan Dhan Yojana and Jan Suraksha Schemes, including the Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Swanidhi Yojana, and the Atal Pension Yojana, which have significantly expanded the reach of formal financial services.

 

In response to this situation, the Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched in 2014 to improve financial access. Now, 99 per cent of adults in India have bank accounts. This scheme enabled lakhs of Indians to open bank accounts and integrate into the formal financial system, he added.

 

At the same event, Shaji KV, chairman of Nabard ( National Bank for Agriculture and Rural Development), emphasised that India’s journey toward Viksit Bharat can gain momentum only when the masses — particularly the rural population — become active stakeholders in the nation's growth story. He pointed out that the rising aspirations within rural communities can be effectively addressed through greater efficiency in financial operations, enabled by fintech innovations. 

 

Shaji further highlighted the need for disruptive innovation in the sector and called for focused efforts to address challenges such as interoperability and KYC (know your customer) norms with economic activities. He underscored the transformative potential of digital public infrastructure, especially in sectors like agritech, fisheries tech, and cooperative tech, which can play a crucial role in enhancing per capita rural income through scalable digital applications.

 

He also mentioned the planned integration of all Regional Rural Banks (RRBs) onto a common digital infrastructure, and noted that Nabard is actively working on digitising agricultural value chains to bridge the rural-urban divide. Additionally, he stressed the importance of women’s empowerment through fintech-driven financial access and inclusion.