India leads fintech revolution with 87% digital payment adoption, says Sitharaman

Finance Minister Nirmala Sitharaman said digital payments are expanding beyond cities into rural India, driven by rising smartphone use and supported by India’s Digital Public Infrastructure, empowering citizens across all sections of society

Union Finance Minister Nirmala Sitharaman said that India’s digital payment adoption has reached an impressive 87%, far surpassing the global average of around 60%. The minister credited the country’s strong digital infrastructure for driving this transformation in the financial landscape.

Speaking during her visit to the Indian Institute of Technology (IIT) Dharwad, where she inaugurated the dhaRti BioNEST Incubation Centre, Sitharaman described India’s fintech ecosystem as a global benchmark. “The level of digital adaptability in India is remarkable and a reflection of the fintech revolution underway,” she said during an interaction with students.

At the heart of this success is the Unified Payments Interface (UPI), which has become the backbone of India’s digital transactions. In the current financial year alone, UPI processed over 18,580 crore transactions valued at ₹261 trillion, making India a global leader in real-time digital payments.

Fintech as a tool for inclusion

Sitharaman emphasised that digital payments are no longer limited to urban centres. Smaller towns and rural areas are quickly catching up, supported by increasing smartphone penetration and internet access. She pointed to India’s Digital Public Infrastructure—comprising Aadhaar, UPI, and DigiLocker—as instrumental in bringing millions into the formal economy.

“Fintech is not just about convenience; it’s about empowering people across all sections of society,” she added.

Focus on rural development and innovation

The Finance Minister is currently on a four-day visit to Karnataka, focusing on rural development, entrepreneurship, and student outreach. Her itinerary includes inaugurations of farmer training centres and agro-processing units in several districts, underlining the government's efforts to boost grassroots economic activity.

Later today, Sitharaman will visit villages in Raichur and Ballari districts to open additional facilities and review operations at a regional bank. Her engagements highlight the Centre’s commitment to strengthening rural infrastructure and supporting local enterprises through innovation and policy support.

The visit will conclude tomorrow with the inauguration of another agro-processing centre in Vijayanagara district.