Union Finance Minister Nirmala Sitharaman on Tuesday urged the global community to exercise caution in how it utilises digital advancements. Speaking at the Global FinTech Fest 2025, the minister states firmly, “We should refrain from weaponising technology.” She highlighted the transformative impact of fintech in India while simultaneously flagging the need to address its darker side, especially in the context of Artificial Intelligence (AI).
The Finance Minister lauded India’s progress in the digital finance space, noting that “Fintech has democratised finance in India; we do half of the world’s real-time digital transactions.” She highlighted the tangible benefits of this progress, stating that due to the Direct Benefit Transfer (DBT) system, savings of Rs 4.31 trillion have accrued, ensuring that “public funds reach people that they are meant for, not to ghost entities.”
Finance Minister warns about dangers of AI
Sitharaman also highlighted the country’s move towards the global AI arena with the substantial “$1.3 billion India AI mission.” However, she quickly pointed to a rising concern by sharing a personal experience. “I’ve seen several deepfake videos of myself,” said the minister, flagging the ethical and societal risks associated with unchecked AI development.
In an important development for India’s financial hub, the Finance Minister officially launched the foreign currency settlement system in GIFT City. She stated that this move allows the GIFT IFSC to join a “select group of financial centres having infrastructure to settle foreign currency transactions locally.”
Focus on fundamentals, says FM
Addressing the fintech industry directly, Sitharaman laid out a clear mandate. She advised fintech companies to “focus on fundamentals like revenue growth, innovative products, risk and compliance capabilities.”
Beyond fintech, she also confirmed that the government is actively “working to strengthen the functioning of GCCs (Global Capability Centres) in India,” noting the presence of 1,800 such entities across the country.
