Sitharaman Urges Fintechs to Tackle Cyberfrauds and Deepfakes with Bold Innovation

Finance Minister Nirmala Sitharaman calls for fintech solutions to combat cyber threats, boost MSME lending, and expand India’s global fintech footprint.

Finance Minister Urges Fintechs to Develop Stronger Cyberfraud Prevention Tools

Finance Minister Nirmala Sitharaman has called on Indian startups to build fintech solutions to combat rising digital arrests and cyberfrauds.

At the Digital Payments Awards 2025, she emphasized the need for real-time innovation that addresses emerging threats like deepfakes and digital extortion.

As India accelerates its digital payments journey, she stressed that maintaining user trust must remain a top priority for fintech players.

Cyber Threats Demand Smarter Fintech Solutions

The Minister acknowledged the fintech sector’s role in driving financial inclusion and simplifying transactions across India’s remotest regions.

However, she warned that risks like fly-by-night frauds, AI-driven impersonations, and coercive “digital arrests” are now undermining public trust.

Therefore, Sitharaman urged fintech firms to prioritize security-first innovation that evolves with the cybercrime landscape and protects the average citizen effectively.

“We need a set of fintech companies constantly working to offer fintech solutions for these newer challenges,” she stated emphatically.

Deepfakes and Digital Arrests Are Growing Threats

Among the most pressing concerns, Sitharaman mentioned deepfake technology, which criminals are using to deceive, impersonate, and defraud the public.

She also highlighted the growing trend of scammers conducting digital arrests, threatening individuals with fake legal claims to extort money.

These tactics require urgent attention, and the Minister asked India’s fintech ecosystem to rise to the occasion with tailored, AI-driven safeguards.

For startups, this is an opportunity to lead in fraud-tech innovation and support national cybersecurity efforts.

Expanding Digital Lending to Support MSMEs

Beyond fraud prevention, Sitharaman also pushed for broader digital lending access—especially for micro, small, and medium enterprises (MSMEs) across India.

She noted that fintech solutions must include low-cost credit tools for businesses, which remain key to India’s economic growth.

Fintechs were encouraged to combine financial innovation with inclusive strategies to meet the needs of underserved markets and fuel entrepreneurship.

India’s Fintech Models Can Become Global Exports

According to Sitharaman, India’s success in fintech is globally exportable—with models like UPI already gaining traction internationally.

Currently, UPI merchant payments are accepted in seven countries, including France, UAE, Bhutan, and Singapore.

“Our players must aim to export our successful models abroad,” she said, urging fintech firms to enter new markets confidently.

With scale, talent, and proven solutions, India’s fintech industry can lead the way globally in digital financial transformation.

Digital Public Infrastructure Has Transformed Inclusion

India has witnessed a remarkable 80% financial inclusion rate in just six years—thanks to its Digital Public Infrastructure (DPI) and fintech efforts.

A World Bank study noted that without DPI, this milestone might have taken India five decades to achieve.

Since 2014, more than ₹44 lakh crore has been transferred via DBT, while ₹3.48 lakh crore was saved by preventing leakages.

These results show that digital innovation, when aligned with public policy, can deliver massive impact in a short time.

Fintech’s Best Chapters Are Still Ahead

The Indian fintech market is projected to grow beyond $400 billion by 2028–29, reflecting an annual growth rate of 30%.

Sitharaman believes that India’s fintech revolution is still in its early stages, with “its best chapters yet to be written.”

She concluded with a rousing message: “Innovate, Include, and Inspire”—urging founders to dream big and act boldly.

Ultimately, fintech solutions must not only simplify money but also protect people, promote inclusion, and inspire global trust.

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