What are the major issues related to the fintech sector in India?
The way fintech is expanding, the need for an effective regulation is also being felt. The lack of strong cyber security with fintech firms can be clearly seen and there is always a risk of theft of personal information of customers. In the year 2023, cases of fraud have increased by 65%. In which the financial loss exceeded Rs 1200 crore. At the same time, RBI has banned the addition of new customers on Paytm in the year 2024 for following the rules.
UPI has a 40 percent share in the case of wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital fraud. In which most people fell victim to wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital arrest. Along with this, incidents like high interest rates and harassment of people taking wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital loans have also come to the fore. Many fintechs are distributing loans without RBI registration and low-income consumers are getting trapped in their trap. RBI faces a big challenge of regulating such companies.
Some things that are worrying
1-Only 38% of rural or semi-urban Indians are able to use wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital financial services. At the same time, 11.30 crore Jan Dhan accounts are inactive.
2-Fintech in india raised only US $ 2.1 billion in the year 2023, which is a decline of about 300% compared to the year 2022.
3-Three companies are doing more than 94% of UPI transactions. These include PhonePe, google pay and Paytm. Lack of competition is preventing new companies from entering this market.
What should be done?
India will have to follow the rules to move further in fintech, so that there is no fraud with the customers. people have to be made aware and new technologies have to be used. This can make india a big center of fintech in the world. Thus, india is progressing rapidly in the field of fintech, but it is facing some challenges, by solving which it can move even further.
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