India - A Global FinTech Superpower

India is amongst the fastest growing Fintech markets in the world. Indian FinTech industry’s market size is $584 Bn in 2022 and is estimated at ~$1.5 Tn by 2025.

The Indian Fintech industry’s Total Addressable Market is estimated to be $1.3 Tn by 2025 and Assets Under Management & Revenue to be $1 Tn and $200 Bn by 2030, respectively

Major segments under Fintech include Payments, Digital Lending, InsurTech, WealthTech

  • The Payments landscape in India is expected to reach $100 Tn in transaction volume and $50 Bn in terms of revenue by 2030.
  • India's digital lending market was worth $270 Bn in 2022 and is expected to reach $350 Bn by 2023.
  • India is the 2nd largest Insurtech market in Asia-Pacific and is expected to grow by ~15X to reach $88.4 Bn by 2030; India is poised to emerge as one of the fastest growing insurance markets in the world.
  • The Indian WealthTech market is expected to grow to $237 Bn by 2030 on the back of a growing base of retail investors.
  • Bn

    Number of digital transactions in FY 2023-24 (till 11.12.2023)

  • INR Lakh Cr

    Value of digital payment transactions done via UPI (FY 2022-23)

  • Fintech Unicorns

  • $ Bn

    Fintech Funding (2014-2022) (approx)

3rd largest fintech ecosystem globally

Over 3000 fintech startups are registered by DPIIT in India 

India accounted for 46% of all real-time transactions worldwide in 2022

Industry Scenario

Fintech Funding & Valuation    

The Fintech sector in India has witnessed funding accounting to 14% share of Global Funding. India ranks #2 on Deal Volume. The Fintech Market Opportunity is estimated to be $2.1 Tn by 2030. Indian fintechs were the 2nd most funded startup sector in India in 2022. Indian Fintech startups raised $5.65 Bn in 2022. The total number of unique institutional investors in Indian fintech almost doubled between 2021 and 2022, rising from 535 to 1019 respectively.

Digital Payments

  • From just 1 Mn transactions in 2016, UPI has since crossed the landmark 10 Bn transactions
  • UPI recorded the highest ever volume of transactions in May 2024 – 14.03 Bn
  • Daily transactions on the UPI platform can touch 1 Bn by 2025
  • Digital Payments increased by 76% in transactions and 91% in value (2022)
  • A pan-India digital payments survey (covering 90,000 respondents) revealed that 42% of respondents have used digital payments
  • Acceptance of digital payments infrastructure has increased from 170 Mn touch points to 260 Mn touch points (increase of 53%)

Regulatory landscape

  • India Stack: A set of APIs that allows governments, businesses, startups and developers to utilise a unique digital infrastructure. One of the most important digital initiatives undertaken globally, aimed at putting up a public digital infrastructure based on open APIs to promote public and private digital initiatives. The ‘’ website serves as a single repository of all major projects on India Stack.
  • JAM Trinity:
    • Jan Dhan Yojana: The world’s largest financial inclusion initiative, “Jan Dhan Yojna”, has helped in new bank account enrolment of over 523.9 Mn beneficiaries
    • Aadhaar: The world’s largest biometric identification system (1.3+ Bn Aadhaars generated so far)
    • Mobile connectivity: India has the 2nd highest number of smartphone users
  • Cross border linkage of India’s fast payment systems (UPI & RuPay network – QR code & P2M based payments) with other countries, is aiding in enhancing the global footprint.
  • Financial Inclusion: India’s financial inclusion has improved significantly over calendar years 2014 to 2021 as adult population with bank accounts increased from 53% to 78%.
  • Financial Literacy: The RBI has set up the National Centre for Financial Education and plans to expand the reach of Centres for Financial Literacy (CFLs) to every block of the. These steps aim to promote financial education across India for all sections of the population.
  • Introduction of UPI123Pay and UPI Lite: Allows access to UPI to 400+ Mn feature phone subscribers and facilitates low value transactions in offline mode through on-device wallet.
  • RBI Payments Vision 2025: The RBI plans to achieve certain outcomes such as 3x increase in number of digital payment transactions, increase of registered customer base for mobile based transactions by 50% CAGR, increase in PPI transactions by 150%, increase of ard acceptance infrastructure to 25 Mn by 2025.
  • Account Aggregator Framework (AA): AA is an advanced framework of sharing consent based financial information between Financial Information Providers (FIPs) and Financial Information Users (FIUs). With 23 Banks onboarded to the AA framework, more than 1.1 Bn bank accounts are eligible to share data on AA. 70.89 Mn users have linked their accounts on the AA framework and shared data. RBI has also notified GSTN as FIP which will enable digital invoice financing and provide much-needed credit to the MSME sector.


  • India stack

    Open API platforms i.e. Aadhar, UPI, Bharat Bill Payments, GSTN

  • Technological Innovation

    Implementation of new business models driven by technologies such as Artificial Intelligence and Machine Learning

  • Increasing internet & smartphone penetration

    India already has the 2nd highest number of smartphone users globally and is the 2nd largest Internet user market. ~1 Bn Internet Users by 2026. The number of households with internet connections with an increase by 46%, reaching 233 Mn households by 2026, compared to 160 Mn in 2021

  • Favourable Demographics

    68% of India’s population is young and 55% of its population is in the age group of 20-59 (working population) in the year 2020 and is estimated to reach 56% of the total population by 2025. By 2030, India will add 140 Mn middle-income and 21 Mn high-income households which will drive the demand and growth of Indian FinTech space.

  • Financial Inclusion Initiatives

    Financial inclusion programmes such as PMJDY, DAY-NRLM, Direct Benefit Transfer, Atal Pension Yojana among others have accelerated the digital revolution and brought more citizens, especially in rural areas, within the ambit of digital financial services


Government Mechanisms to Support Fintech

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Asked Questions

Can the NEFT system be used for remitting funds even by those who do not have a bank account?

Yes, the person having no bank account can remit funds through NEFT to a beneficiary having a bank account, with another NEFT member bank. It can be done by depositing cash at the nearest NEFT enabled branch of any bank, by furnishing additional details such as complete address, telephone number, etc. Such cash remittances will, however, be restricted to a maximum of ₹ 50,000/- per transaction.

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Which are the non-bank entities enjoying access to CPS presently?

Some of the non-bank entities with access to CPS include standalone primary dealers, clearing corporations of stock exchanges, central counterparty (CCIL), retail payment system organisation (NPCI), select financial institutions (NABARD, EXIM Bank) and DICGC. For more information, please click here, and here.

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What are the different Centralised Payment Systems (CPS) operated by the RBI?

The RBI owns and operates following CPS:

a)      Real Time Gross Settlement (RTGS) System – It is the country’s Large Value Payment System and was introduced in March 2004. It was subsequently enhanced to Next Generation-RTGS (NG-RTGS) built on the ISO 20022 standard with advanced features such as hybrid functionality, liquidity management functions, future date functionality, scalability, etc. The transactions settle real-time on a gross basis in the books of RBI and have a floor value of Rs. 2 lakh. RTGS also settles Multilateral Net Settlement Batch (MNSB) files emanating from ancillary payment systems such as CCIL and NPCI. It is available round the clock on all days of the year with effect from December 14, 2020.

b)      National Electronic Fund Transfer (NEFT) system – It is a retail payment system and was introduced in November 2005. NEFT has a straight through process which operates in 48 half-hourly batches 24x7x365 with effect from December 16, 2019. There is no floor or ceiling for the amount that can be transferred in a single transaction, because of which NEFT has emerged as a popular hybrid payment system.

For more information, please click here.

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Can NEFT be used to transfer funds from / to NRE and NRO accounts?

Yes, NEFT can be used to transfer funds from / to NRE and NRO accounts in the country. This, however, is subject to the adherence of the provisions of the Foreign Exchange Management Act, 2000 (FEMA) and Wire Transfer Guidelines.

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Is it mandatory for a PPI issuer to allow interoperability?

Yes, it is mandatory for a PPI issuer to allow interoperability. It is mandatory for the PPI issuer to give the holders of full-KYC PPIs interoperability through authorised card networks and UPI. All modes of acceptance (including QR codes) and PPI issuance are required to be interoperable by March 31, 2022

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