FM proposes federated industry platform for fintech
Mumbai: Union Finance Minister Nirmala Sitharaman proposed a Federated Industry Platform for the fintech sector while addressing the Global Fintech Fest at Mumbai on Friday.
In her valedictory address, Nirmala Sitharaman described the fintech sector’s tremendous growth because it has not been heavily organized yet. She pointed out that as the companies in this sector become larger andW more international, there is a need for a platform like this to lend a credible and collective voice to the sector.
She said, “ I recognise that this is an industry which has traditionally thrived precisely because it has not been heavily organized. But as companies become larger and more international, collective engagement need not diminish that freedom. It can help protect the space in which that freedom operates. ”
“There may therefore be merit in considering a Federated Industry Platform that brings together the broader Indian technology ecosystem. Not to speak over individual companies, but to give the sector a credible collective voice,” she added.
Sitharaman said,“ The federated platform would engage with foreign governments and regulators worldwide. This platform would represent Indian industry where the international rules governing emerging technologies are being shaped.”
Demographic Advantage
She spoke about India’s demographic advantage becoming ‘active and reality’ that can be witnessed at the Global Fintech Fest. She lauded the transformation of India from developing a powerful Digital Public Infrastructure with UPI processing billions of transactions.
She said, “ India is experiencing its demographic dividend in real time standing before me in the room. The promise feels alive, tangible and ready to shape the future.”
Taking a dig at the pessimistic commentators regarding the recent growth rate of the economy in April-June quarter, she said, “ Naraj Fufas are never short of reason to doubt India’s momentum and capabilities of our youth, spending their time questioning India’s demographic dividend.”
She said, “Young generation is not waiting for legacy yardsticks to validate their productivity. They are already writing the next codes, building platforms, scaling enterprises and proving that India’s greatest demographic advantage is unstoppable reality.”
AI and Risks
On Agentic AI, the Finance Minister spoke about the risks posed by Artificial Intelligence as we continue to go ahead.
Without naming, she gave the example of an Anthropic engineer who resigned recently saying that AI companies are “racing straight to self-improving superintelligence and gambling with our lives.”
She said, “ I raise this issue not to cause alarm, but to emphasize the institutional accountability towards larger humanity.”
Describing the lack of accountability and right direction, FM said, “ Who from the global AI industry will stand up and reassure the public, who will demonstrate the safeguards are actually keeping up pace with the growing speed.”
“Unless those safeguards arrive quickly and update continuously, the question of AI going rogue is left for the society at large to answer. And this is an unsustainable distribution of risk,” she added.
Tokenisation Collab
On the tokenisation front, Sitharaman mentioned India’s first tokenised corporate bond pilot done by REC Limited, an electrification company, under the SEBI regulatory sandbox where the rupee moved at the exact same day and instantly the payment was made.
She said, “The entire framework and monetary settlement was possible due to the presence of the Central Bank Digital Currency (CBDC). Tokenisation architecture is being tested across the world. But, the world eventually returns to the foundational question, what is the money leg made of?”
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