Offline Payments Can Drive Financial Inclusion, Says DFS Secretary
During the recent CII Summit on Financial Inclusion and FinTech, Department of Financial Services (DFS) Secretary M. Nagaraju urged fintechs to prioritise offline payments. He emphasized that such innovation could transform access for India’s unbanked and under-served populations.
According to Nagaraju, financial inclusion plays a critical role in economic growth and poverty reduction. He called on fintech innovators to move beyond urban and connected regions to ensure offline payment solutions reach remote communities.
Offline Payments Key to Reaching the Unconnected
“Fintechs must now focus their attention on payment solutions for offline users,” Nagaraju stated during his keynote speech. Despite strong digital infrastructure, many users in rural or low-connectivity zones still struggle with basic digital transactions.
While India has witnessed a phenomenal rise in digital payments, not all citizens benefit equally. Offline payments can bridge that divide, particularly in areas with poor internet connectivity or digital literacy.
Connecting Inclusion to Global Development Goals
Nagaraju highlighted that seven of the United Nations’ 17 Sustainable Development Goals (UN SDGs) link directly to financial inclusion. This shows that improving financial access is about more than banking—it’s central to sustainable development.
By empowering people with offline options, fintechs can play a pivotal role in areas like education, gender equality, and reduced inequality. Moreover, they can support the transition from informal to formal economies, thereby boosting national productivity.
India’s Financial Inclusion Journey: From 35% to 99%
Reflecting on India’s past, Nagaraju pointed to data from the Global Findex Database. In 2014, only 35% of Indian adults had bank accounts. That figure has since skyrocketed.
Thanks to the Pradhan Mantri Jan Dhan Yojana (PMJDY), India now boasts 99% adult account ownership. This massive leap was driven by government-backed initiatives and strong policy support for inclusive banking.
Fintechs Must Continue the Inclusion Momentum
Even with this progress, access alone doesn’t guarantee usage. Offline payment solutions will ensure newly banked users can transact confidently. Fintechs should, therefore, focus on user-friendly, low-tech tools that work even without smartphones or data.
The government has already taken steps to enhance real-time oversight of transactions. But true financial empowerment requires tools that function regardless of connectivity or device sophistication.
The Way Forward: Building for Bharat, Not Just India
Nagaraju’s call signals a clear opportunity: fintechs must build for the next 100 million users, not just the connected elite. By doing so, they can unlock new markets and deepen financial inclusion across all regions.
Ultimately, this means embedding offline payments into the digital strategy. That way, India’s fintech success story becomes truly inclusive—reaching everyone, everywhere.