In a rapidly evolving digital landscape, Finance Minister Nirmala Sitharaman, on Tuesday, at the 6th edition of the Global Fintech Fest 2025, called for refraining from weaponising technology. In a world increasingly shaped by artificial intelligence (AI) and digital infrastructure, innovation must never be weaponised. She urged global stakeholders to reflect on the ethical boundaries of technological advancement.
Finance Minister cautioned against the misuse of proprietary technologies, warning that global progress is often undermined when advancements are turned inward for strategic manipulation. “Having obtained certain proprietary rights over some parts of it, we should refrain from weaponizing it,” she stated, adding that such practices threaten the very spirit of collaboration and trust that technology is meant to foster. It was a reminder that the race for dominance in AI and fintech must be tempered with responsibility and restraint.
What did Sitharaman say?
Sitharaman shared her personal experience of being targeted by a deepfake video, manipulated content designed to mislead and distort public perception. “The new generation of fraud is no longer about breaching firewalls, it’s about hacking trust,” she added, highlighting the urgent need for robust safeguards against digital deception. Her remarks showcased the darker side of AI, where tools meant to empower can just as easily be repurposed to exploit.
Despite these challenges, Sitharaman remains optimistic about the role of AI in building a better financial future. But she emphasised that the future must be built on a foundation of ethical design, responsible regulation and shared purpose. “It invites innovators, regulators, and citizens to ensure that progress is not just measured by speed and scale, but by integrity and trust,” she adds.
“In the span of a single decade, we have connected a population equivalent to that of the entire European Union (EU) to the formal banking system, opening over 56 crore Jan Dhan bank accounts,” she stated. India now ranks third in the world for the number of fintech companies and also leads in digital payment volumes, having processed over 18,580 crore UPI transactions worth Rs 261 lakh crore in 2024-25.
Government to leverage digitization
Nearly half the world’s real-time digital transactions happen in India, with adoption rates of 87 per cent compared to a global average of 67 per cent, Sitharaman said. “Government has leveraged digitisation by introducing Direct Benefit Transfer (DBT) system for all its social welfare schemes, which has significantly boosted welfare efficiency by reducing subsidies and leakages, with savings of Rs 4.31 lakh crore and a 16-fold increase in beneficiary coverage between 2014 and 2024,” she said.
The country’s Global Capability Centre (GCC) landscape has evolved from cost-arbitrage hubs into high-value engineering, research and development (R&D) and innovation centres, particularly in the banking, financial services and insurance (BFSI) domain, Sitharaman said.
Sitharaman laid out four key messages for the fintech sector. First, focus on fundamentals—revenue growth, profitability, risk management, and regulatory compliance. Second, prioritise trust, safety, and inclusion, especially as millions enter the formal financial system. Third, embrace responsible regulation, likening it to a seat belt for safe acceleration, with mechanisms like the RBI regulatory sandbox and SRO framework encouraging experimentation with accountability. Fourth, address remaining gaps, including credit access for MSMEs, financial inclusion for women and gig workers, green financing for a low-carbon economy, and sustainable energy supply for AI.
She said, “India’s future is anchored in the idea of Viksit Bharat by 2047, where technology serves as a lift, not a sink, deepening trust, safeguarding privacy, and uplifting every citizen.”
The finance minister also launched the foreign currency settlement system (FCSS) within the GIFT International Financial Services Centre (IFSC). “This is not just a technological upgrade, it’s a strategic leap that places India on the map of seamless global finance,” said Sitharaman.
This system enables real-time settlement of foreign currency transactions, eliminating the traditional 36–48 hour delay of correspondent banking and positioning GIFT City alongside global financial hubs. With the operationalisation of the FCSS, GIFT IFSC will join a select group of global financial centres, including Hong Kong, Tokyo, and Manila, that have the infrastructure to settle foreign currency transactions locally, Sitharaman added.