Finance Minister Nirmala Sitharaman on Wednesday urged fintech companies to focus more on rural India, saying it is not just a developmental need but also a big business opportunity.

In her address at the Digital Payments Awards 2025 here, the minister said that the next wave of fintech innovation should come from villages and the agricultural sector.

She encouraged companies to see rural areas as potential markets rather than just a part of their corporate social responsibility.

"Rural India is a fertile ground for growth. Every fintech firm should explore it, as demand is growing and sustainable," FM Sitharaman said.

She pointed out that just like FMCG companies have grown by entering rural areas, fintech companies should also adopt a similar strategy to expand.

FM Sitharaman also highlighted the need to bring more micro, small, and medium enterprises (MSMEs) into the digital financial ecosystem by connecting them to account aggregator frameworks.

The minister also stressed the importance of creating financial products that are designed for farmers and rural consumers.

"These users have different needs and challenges, which require customised solutions," she added.

However, the minister also warned about rising risks in the digital space.

She said that digital frauds and deepfakes are serious threats and called for greater investment in digital literacy and cybersecurity.

"Cybersecurity is a growing concern. I have spoken to many startups and fintech firms about this. We need solutions that protect people from digital fraud and misuse,” FM Sitharaman stated, adding that no user should feel “digitally arrested at home” due to unsafe platforms.

At the same event, Financial Services Secretary M. Nagaraju stressed the next phase of India’s digital payments journey.

He said it is important to push for digital adoption in underserved regions and sectors.

Nagaraju also stressed the need to build strong systems to prevent fraud and improve digital and financial literacy, especially at the grassroots level.