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India formally launched UPI at the iconic Eiffel Tower in Paris, terming it as taking Prime Minister Narendra Modi’s vision of taking UPI global.

On 1 February 2024, Finance Minister Nirmala Sitharaman will present her interim budget in India's election year. The focus is on making India an attractive destination for foreign investments while maintaining fiscal discipline. Key budget expectations in the Financial Services space include addressing tax implications for Alternate Investment Funds (AIFs) and achieving tax parity among different categories of AIFs.

Consumer credit in India is growing rapidly, but it is not reaching everyone. The industry primarily caters to affluent urban professionals. However, there is a push to broaden access and make growth more sustainable. The cost of adding new borrowers is a concern for lenders, especially for lower-income earners. One solution being explored is using India's smartphone-based payment protocol, Unified Payments Interface (UPI), to offer credit. This would reduce costs and allow lenders to serve a wider group of borrowers.

Even as it grows, credit can still become safer if UPI spreads access to a wider group of borrowers and draws in more lenders. With broader access to credit, private consumption, which is expanding 3 percentage points slower than the economy’s overall 7%-plus growth rate, could become more stable

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