Govt, ADB ink $23 milllion loan agreement to strengthen fintech ecosystem

New Delhi, Mar 14, 2024 

The government and the Asian Development Bank (ADB) on Thursday signed a $23 million loan agreement to enhance access to quality fintech education, research, and innovation at the Gujarat International Finance Tec-City.

GIFT City is an initiative of the Centre and the Gujarat government to foster India's financial services and fintech ecosystem, the finance ministry said in a statement.

As per the loan agreement, a fintech institute will be set up at GIFT City. The pact was signed by Finance Ministry Joint Secretary Juhi Mukherjee and Officer-in Charge of ADB's India Resident Mission Rajesh Vasudevan.

After signing the agreement, Mukherjee said the project will establish International Fintech Institute (IFI) to strengthen fintech education, boost startup success rates, and drive fintech research and innovation.

"The project's emphasis on market-driven fintech skills programmes, creating enabling environment for private sector investment and enhancing collaboration between industry, skills development institutes and development partners will promote holistic growth of fintech ecosystem in India," Vasudevan said.

The IFI, to be established in partnership with globally reputed institutes and universities, will offer industry-aligned fintech training programmes that meet international standards.

The institute will strengthen innovation and entrepreneurship by supporting startups, especially women-led, through incubation and acceleration services. It will also collaborate with industry and venture capital funds to support the growth of fintech startups.

These interventions will contribute to enhanced employment opportunities, workforce competitiveness, and productivity in new and green technologies.

[Press Trust of India]