OVERVIEW-

• The Asian Development Bank (ADB) has sanctioned a USD 23 million loan with the Gujrat International Finance Tec-City (GIFT) in India. 

• According to ADB, Gujarat International Finance Tec-City (GIFT), a state-owned enterprise, serves as a cornerstone for nurturing fintech ecosystems and financial services within India.

ADB’S ROLE AND MEMBER ESTABLISHMENT-

• Establishment:

• ADB, founded in 1966, functions as a financial institution aimed at economic development in the Asia-Pacific region.

• ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development.

• Ownership:

• Owned by 68 members, including 49 from the region, the bank plays a crucial role in fostering economic growth and cooperation in the region.

PURPOSE AND BENEFIT OF THE LOAN-

 

• 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.

• The statement said the IFI will offer fintech training programmes which are aligned with industry and international standards.

• The ADB program will support research on innovative solutions and technologies.

• 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.

• The project will help establish a state fintech readiness index and develop new solutions to emerging technologies.

• ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.

INTERNATIONAL FINTECH INSTITUTE(IFI) DEVELOPMENT-

• Objective:

• To establish a comprehensive, sustainable, and climate-resilient International Fintech Institute within GIFT.

• Key Features:

• Collaborating with renowned global institutes and universities to provide fintech training programs aligned with industry and international standards.

RESEARCH AND INNOVATION FOCUS-

• Target Areas:

1. Climate fintech
2. Regulatory technology
3. Social inclusion
4. Gender equality in finance

• Initiatives:

• Supporting research on innovative solutions and technologies, fostering the development of a state fintech readiness index, and creating new solutions for emerging technologies.

CONCLUSION-

• The ambitious project spearheaded by ADB will see the establishment of an inclusive, sustainable, and climate-resilient International Fintech Institute (IFI) within GIFT’s premises.

• As the fintech ecosystem continues to evolve and expand, ADB’s intervention is poised to serve as a catalyst for driving innovation, fostering entrepreneurship, and unlocking new avenues for economic growth and financial inclusion in GIFT City.