ADB to provide $23 million loan for the Fintech sector

The Asian Development Bank will provide a $ 23 million loan to the Government of India to set up an International Fintech Institute at the Gujarat International Finance Tec-City (GIFT-City) in Gujarat. The agreement was signed on 14 March 2024 by Ms Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, for the Government of India and Mr Rajesh Vasudevan, Officer-in-Charge of ADB’s India Resident Mission, 

Purpose of the Loan 

• The loan aims to promote holistic growth of the fintech ecosystem in India by setting up an International Fintech Institute at the GIFT-City in Gujarat.
• The International Fintech Institute will be established in partnership with globally reputed institutes and universities. It will offer industry-mandated fintech training programmes that meet international standards.
• The institute will strengthen innovation and entrepreneurship by supporting startups through incubation and acceleration services. 
• The institute will collaborate with industry and venture capital funds to support the growth of fintech startups in the country.
• These interventions are expected to boost employment opportunities, increase workforce competitiveness and enhance productivity in the field of new and green technologies.

GIFT CITY 

• The Gujarat International Financial Tech(GIFT) City has been established by the government of Gujarat. It is India’s first operational smart city, with state-of-the-art infrastructure that offers international financial services to investors.
• It lies on the bank of the Sabarmati River between Ahmedabad and Gandhinagar.
• The Gift City is a special economic zone (SEZ) that offers tax incentives to domestic and foreign investors who want to base their international financial operations in the city.

 What is FINTECH

The word “fintech” is a combination of the words “financial” and “technology.” It refers to using technology, especially digital technology, to deliver financial services and products to consumers. These services can be in the fields of insurance, banking, investing, etc.

Asian Development Bank (ADB)

• Asian Development Bank is a regional Multilateral Development Bank (MDB) which was established on 19 December 1966 to provide development loans to the countries in the Asia-Pacific region. 
• The ADB provides loans, grants and equity investments to promote social and economic development in its member countries and partners. It also provides technical assistance to the member countries. 
• In 1966, the Bank had  31 founding member countries, but now, there are 68 member countries.
• Headquarters: Mandaluyong City, Manila, Philippines.
• President of ADB: Masatsugu Asakawa of Japan (Japanese has always been the president of ADB since its inception).