UPI could become a template for digital payments for other countries: PM at G20

Addressing the inaugural session of the first finance ministers and central bank governors meeting of the G20 under India’s presidency, Modi said that the country would be happy to share its experience with the world on digital payments.

“…During our G20 Presidency, we have created a new system. This allows our G20 guests to use India’s path-breaking digital payments platform, UPI. As you make use of it and experience its ease of use, you will understand why Indian consumers have adopted it so willingly. Examples like UPI can be templates for many other countries too. We would be happy to share our experience with the world. And, the G20 can be a vehicle for this,” PM Modi said during his video address at the FMCBG G20 meeting, which is taking place in India’s tech capital Bengaluru. 

He said that India’s digital payments ecosystem, which is “highly secure, highly trusted, and highly efficient” has been developed as a free public good, and has radically transformed governance, financial inclusion, and ease-of-living in India.

While the prime minister highlighted the benefits of digital payments, he said that it was important to develop standards to regulate risks emanating from misuse of technology.

“During the pandemic, digital payments enabled contactless and seamless transactions. However, some recent innovations in digital finance also pose risks of destabilization and misuse. I hope that you will explore how the power of technology can be used for good, while developing standards to regulate its possible risks. India’s own experience can be a model,” said Modi.

The meeting, spread over three sessions on Friday and Saturday, will cover issues like leveraging digital public infrastructure for advancing financial inclusion and productivity gains, financing resilient, inclusive, and sustainable cities for tomorrow, and strengthening multilateral development banks to address shared global challenges like sustainable development goals.

Amid lingering global economic uncertainty and geopolitical risks, the prime minister urged participants of the FMCBG G20 meeting to work together to bring stability in the global economy. He also highlighted the erosion of trust in the international financial institutions partly due to the “slow reforms”.

“The COVID pandemic has delivered a once-in-a-century blow to the global economy. Many countries, especially developing economies, are still coping with its after-effects. We are also witnessing rising geo-political tensions in different parts of the world. There are disruptions in global supply chains. Many societies are suffering due to rising prices. And, food and energy security have become major concerns across the world. Even the financial viability of many countries is threatened by unsustainable debt levels. It is now up to you – the custodians of the leading economies and monetary systems of the world to bring back stability, confidence and growth to the global economy. It is not an easy task,” said Modi.