FM Sitharaman Urges Fintechs to Tap Rural India as Next Growth Frontier
- FM Nirmala Sitharaman urged fintech firms to tap into rural and agricultural markets, calling them a major business opportunity beyond CSR.
- She stressed integrating MSMEs into the digital ecosystem and developing financial products tailored for farmers and rural consumers.
- Highlighted the growing threat of digital fraud and deepfakes, calling for stronger investments in cybersecurity and digital literacy.
Finance Minister Nirmala Sitharaman called on fintech companies to shift their focus towards rural India, emphasizing that the move is both a developmental necessity and a lucrative business opportunity.
Speaking at the Digital Payments Awards 2025 in New Delhi, Sitharaman said the next wave of fintech innovation must emerge from India’s villages and agricultural sector. “Rural India is a fertile ground for growth. Every fintech firm should explore it, as demand is growing and sustainable”, she stated.
She urged companies to view rural markets as strategic growth areas rather than extensions of their corporate social responsibility (CSR) efforts. Drawing parallels with the FMCG sector, she highlighted how businesses that penetrated rural markets experienced significant expansion.
The Finance Minister also stressed the need to onboard more micro, small, and medium enterprises (MSMEs) into the digital financial ecosystem by integrating them with account aggregator frameworks. She called for the development of financial products tailored to the unique needs of farmers and rural consumers, stating, “These users have different needs and challenges, which require customised solutions”.
However, Sitharaman also flagged rising threats in the digital space, such as cyber fraud and deepfakes. She urged fintechs to invest in cybersecurity and digital literacy to safeguard users. “Cybersecurity is a growing concern. We need solutions that protect people from digital fraud and misuse. No user should feel digitally arrested at home”, she said.
Financial Services Secretary M. Nagaraju, also present at the event, echoed similar sentiments, stating that India’s next digital payments leap must focus on underserved regions and sectors. He underlined the importance of building robust fraud prevention systems and enhancing financial literacy, particularly at the grassroots level.
The event underscored a clear message: the future of fintech lies in rural innovation, inclusion, and security.
