Abstract: The Indian financial sector has undergone significant changes over the past two decades, evolving from traditional banking to a technology-driven ecosystem. The introduction of digital banking, mobile payments, Aadhaar-linked transactions, and AI-powered financial services has revolutionised the way people access financial services. A key driver of this transformation has been the Unified Payments Interface (UPI), which has made digital transactions seamless and widely adopted. Additionally, government initiatives such as Jan Dhan Yojana, demonetization, and digital lending regulations have played a crucial role in promoting financial inclusion and fintech adoption in the country. This paper covers the evolution of fintech in India, focusing on its key growth drivers, challenges, and future trends. Despite its rapid expansion, fintech in India faces challenges such as cybersecurity risks, regulatory compliance, financial literacy gaps, and infrastructure limitations. Emerging trends such as AI-driven automation and blockchain technology are expected to drive innovation in the sector. The study highlights how fintech is shaping India’s digital economy and underscores the need for robust security measures, effective regulatory frameworks, and public awareness to ensure its sustainable growth.

Keywords: Fintech, Traditional Banking, Digital Transformation, Blockchain, Artificial Intelligence, UPI.

Download: | DOI: 10.17148/IMRJR.2025.021203