PM Modi asks banks to come out with innovative products for startups, fintech

Prime Minister Narendra Modi on Friday stressed on increasing credit to businesses to meet the needs of a fast reflating economy and said financial products will have to be tailor-made for fintech and startups.

He said that although the government’s endeavour is to promote the private sector, the public sector still needs to have their presence in banking and insurance to support the poor.

Speaking at a webinar on Budget announcements on Financial Services, Modi said to help medium and small businesses during the COVID pandemic, 90 lakh Micro, Small and Medium Enterprises (MSMEs) were given credit worth Rs 2.4 trillion.

“Supporting MSME and startups and expanding credit flow to them is necessary. The government has undertaken reforms and opened up sectors like farm, coal and space. Now it’s the responsibility of the financial sector to understand the aspirations of rural and smaller cities and make them the strength of Aatmanirbhar Bharat. “As our economy is growing, and growing fast, credit flow has also become equally important. You have to see how credit reaches new sectors, new entrepreneurs. Now you will have to focus on creation of new and better financial products for Startups and Fintech,” Modi said.