Spice Money’s vision is to empower rural communities across India: Dilip Modi

Spice Money is India's pioneering rural fintech company. You can start your own business with zero investment. There is fast and easy onboarding with KYC. 

Dilip Modi, Founder and CEO of Spice Money, tells us more. Excerpts from an interview: 

DQ: Spice Money has emerged as a leader in driving financial inclusion across rural India. Can you share the company’s journey so far and the key factors behind its success in empowering the rural population?

Dilip Modi: Spice Money’s vision is to empower rural communities across India, providing them with equitable access to essential financial and banking services. With over 15 lakh Adhikaris (local merchants) onboarded, and a reach across 95% of India’s pincodes, we have developed a unique tech-led model that meets the specific needs of emerging markets. 

According to NPCI data, Spice Money operates the largest assisted bill payments network for semi-urban and rural India, making us a leading player in bringing essential financial services to underserved areas. With the expansion of Bharat Connect and the addition of new billers, we are strengthening the accessibility of bill payments for these communities through our extensive assisted network. 

In just the past three months, approximately 1,00,000 Adhikaris completed around 21.7 lakh transactions worth ₹450 crores through Bharat Connect. This growth highlights the impact of Bharat Connect in bridging the financial inclusion gap and enhancing the earning potential for our Adhikari network.

Our future roadmap is centered on driving UPI adoption for the next billion users in India, particularly in rural areas, by leveraging our PPI (Prepaid Payment Instrument) license, which now offers interoperability under RBI’s guidance. This license enables us to offer secure and seamless digital transactions through a PPI wallet, providing Adhikaris and their customers with flexible, cashless payment solutions that are especially valuable for those with inactive or inaccessible bank accounts. 

We are also focused on building a comprehensive financial ecosystem tailored to rural India, with offerings that extend beyond payments to include investments, savings, insurance, and credit products. By establishing a strong digital payment infrastructure that connects merchants (Adhikaris) and customers, we unlock further opportunities for innovation, including introducing e-commerce solutions like ONDC and specialised credit services for rural MSMEs. 

Supported by an asset-light branch model and community representatives who foster trust and accessibility, our Adhikari centers are evolving into hubs of digital and financial empowerment, bringing us closer to our vision of self-reliant and economically resilient rural communities.

DQ: With over 20 lakh Business Correspondents (BCs) in India, training and certification remain a major challenge. What kind of policy reforms do you believe are necessary to simplify and streamline BC training, especially for agents providing essential services like AePS cash-out and money transfer?

Dilip Modi: Business Correspondents (BCs) play a critical role in India’s financial inclusion journey, yet training and certification hurdles often limit their effectiveness. One of the most successful examples of industry-led training is the Spice Money Academy, which has already trained 5.2 lac Adhikaris to date. 

The academy is an ecosystem designed to provide knowledge about Spice Money’s products and services while fostering business growth. With a clear focus on raising awareness and educating the network, the academy aims to increase cross-product adoption and fuel transactional growth on the platform. 

To simplify and streamline BC training, we believe a multi-pronged approach is needed:

Digital-first Training Programs: The government and regulatory bodies should encourage the adoption of app-based and online training modules that BCs can access at their convenience, reducing dependency on physical training centers. These modules should be available in multiple regional languages to ensure inclusivity.

Standardized and Tiered Certification System: A nationally recognized, tiered certification framework can help BCs specialize in different services like AePs cash in and cash out services, money transfers, and credit facilitation. This will ensure that agents are trained progressively, improving their competency over time.

Public-Private Collaboration: FinTech companies like Spice Money, in partnership with government agencies, should be allowed to co-develop training programs that are aligned with ground-level realities. A regulatory sandbox approach can be introduced to test new training methodologies before scaling them.

Incentivization for Training Completion: Introducing incentives, such as reduced compliance burdens for certified BCs or monetary benefits, can encourage agents to complete their training on time.

Real-time Performance Monitoring: AI-driven analytics can be integrated into training programs to track BC performance and suggest personalized learning paths based on their strengths and weaknesses.

By implementing these reforms, we can ensure that BCs are well-equipped to provide seamless financial services, fostering greater trust and efficiency in the rural fintech ecosystem.

DQ: The adoption of Face Authentication for AePS transactions and eKYC has been gaining traction. How do you see this technology transforming rural fintech operations, and what steps is Spice Money taking to implement and promote Face-ID services?

Dilip Modi: Face Authentication is a game-changer for rural fintech operations, especially in enhancing security, accessibility, and efficiency. Unlike traditional biometric authentication, which relies on fingerprint sensors that may not always work due to wear-and-tear issues, Face Authentication provides a seamless, contactless, and more reliable alternative.

The impact of Face-ID-based AePS transactions and eKYC is multifold:
Improved Accessibility: Many rural users, particularly daily wage workers and farmers, face fingerprint authentication issues. Face-ID eliminates this barrier, ensuring uninterrupted access to essential financial services.

Enhanced Security: Face Authentication significantly reduces fraud risks such as biometric spoofing and unauthorised access, reinforcing the trust of rural users in digital transactions.

Faster and Paperless Processing: Face-ID enables real-time eKYC for onboarding new users, reducing dependency on physical documentation and manual verification processes.

At Spice Money, we are proactively integrating Face-ID authentication across our AePS and eKYC services. Our approach includes:

Agent Awareness & Training: We are actively training our BC network on the benefits and usage of Face Authentication to ensure smooth adoption.

Partnerships with Regulatory Bodies: We are working closely with NPCI and UIDAI to ensure seamless implementation while complying with all security protocols.

Technology-driven Rollout: Our mobile app is being enhanced to support Face-ID authentication, ensuring our agents and customers can access this feature effortlessly.

Customer Education Campaigns: Through localized outreach programs, we aim to educate rural customers about the safety and benefits of Face Authentication, encouraging greater adoption.

Face Authentication has the potential to revolutionize rural digital transactions, making financial services more inclusive and secure. At Spice Money, we are also committed to reaching out to forums and discussions creating more advocacy on how important it is to have all the banks participating in enhancing their technology enabling face auth. 

Today over 40 banks are live on face authentication and it will be important to see how we have 100% participation across all the banks PSB, private banks, cooperatives and gramin as well. The same point was discussed with DFS sec & NPCI to fast-track the banks to participate here this will also eradicate the use or dependency of the biometric device which is a cost and the transcation success on Aeps is lower in comparison to the face authentication.

DQ: Digital audits and monitoring of BC agents have been proposed as an alternative to traditional physical audits. How can digital technologies like video-based interviews and geotagging enhance efficiency and compliance in the BC ecosystem?

Dilip Modi: Traditional physical audits of Business Correspondents (BCs) can be time-consuming, costly, and logistically challenging, particularly in remote areas. Digital audits, powered by video-based interviews and geotagging, present a transformative solution that enhances efficiency, compliance, and security in the BC ecosystem.

Key benefits of digital auditing include:
Real-time Monitoring: Video-based interviews allow regulators and financial institutions to conduct real-time assessments of BC agents, ensuring compliance without requiring physical visits.

Fraud Prevention: Geotagging ensures that transactions are conducted from authorised locations, preventing fraudulent activities such as proxy transactions or unauthorised cash withdrawals.

Cost and Time Efficiency: Digital audits significantly reduce operational costs and time, allowing fintech companies to conduct frequent and thorough checks without additional logistical expenses.

Data-driven Compliance: AI-powered analytics can flag anomalies in transaction patterns, enabling proactive fraud detection and timely intervention.

At Spice Money, we are leveraging digital auditing mechanisms to strengthen compliance and improve BC monitoring:

Video-based BC Verification: We have introduced video-based KYC verification for BC agents to ensure authenticity during onboarding and ongoing compliance checks.

Geotagging for Transaction Security: Our platform integrates geotagging to validate the location of BCs, reducing unauthorized activities and ensuring better service delivery.

Automated Training & Assessment: We are developing automated periodic assessments for BC agents to ensure they remain updated on compliance norms, reducing the need for repeated physical verification.

By embracing digital audits, the BC ecosystem can achieve a new level of transparency, security, and operational efficiency. Spice Money remains committed to driving this digital transformation, ensuring that financial services remain accessible, secure, and compliant across rural India.

DQ: What kind of policy interventions would you suggest to ensure the commercial viability of Corporate BC networks, particularly in remote and challenging regions like the Northeast?

Dilip Modi: Policy interventions are crucial to ensuring the long-term commercial viability of Corporate Business Correspondent (BC) networks, especially in remote regions like the Northeast, where financial access is still a challenge. Here are some key recommendations:

Introduction of a Graded Commission Structure: Implementing region-specific commission rates, as suggested by the CS Shetty Committee, will help BCs in remote areas sustain operations. Higher commissions in difficult-to-reach regions will incentivize financial service expansion.

Infrastructure & Equity Funding Support: The government should introduce a dedicated BC Infrastructure Fund to support last-mile connectivity, digital onboarding, and operational costs in underserved regions.

Regulatory Reforms & Clarity: Establishing a separate regulatory framework for BC-led fintechs will help streamline compliance processes and remove restrictive policies that currently limit innovation.

GST Waiver on BC Services: Removing or reducing GST on essential BC services will make transactions more cost-effective and encourage further investment in financial inclusion efforts.

Incentives for Digital & Assisted Banking Models: Providing financial and operational incentives for BCs deploying AI-driven underwriting, biometric authentication, and paperless banking solutions will accelerate the adoption of digital financial services.

Mandatory Bank Participation in AePS Deposits: Encouraging more Public Sector Banks (PSBs) to allow AePS-enabled cash deposits at BC outlets will strengthen liquidity and improve financial accessibility in remote regions.

By implementing these interventions, Corporate BC networks can operate sustainably, expand their reach, and truly empower communities in regions like the Northeast, bringing India closer to its financial inclusion goals.

DQ: Expanding BC roles into financial products like insurance, mutual funds, and credit facilitation has been a topic of discussion. How do you see Spice Money diversifying its offerings beyond traditional banking services in the coming years?

Dilip Modi: Spice Money is committed to evolving beyond traditional banking services and becoming a full-stack financial services provider for rural India. Expanding BC roles into products like insurance, mutual funds, and credit facilitation is a natural progression that aligns with our mission of financial inclusion.

Key areas of diversification:

Insurance & Wealth Products: We are actively working on making financial products accessible to rural customers who have traditionally been underserved. By leveraging our existing BC infrastructure, we aim to provide simplified, assisted insurance services and basic investment opportunities for Bharat.

Credit & Lending Facilitation: Spice Money is exploring AI-driven credit underwriting to enable micro-loans and MSME financing for rural entrepreneurs. We plan to partner with NBFCs and banks to bridge the rural credit gap by offering tailored lending solutions.

Government & Utility Services: Expanding the Bharat Bill Payment System (BBPS) portfolio to include more categories like school fees, taxes, and municipal payments, further integrating financial services into everyday life. We are enhancing participation in government financial schemes through Aadhaar-linked facilitation.

Expanding Digital Payments: With the launch of UPI for Rural India, we are strengthening digital payment infrastructure in Tier 3 & 4 locations to drive cashless adoption. We are enabling PPI wallets and embedded finance solutions to improve accessibility for underserved communities.

Spice Money envisions its Adhikaris as comprehensive financial service providers, ensuring that rural India has access to banking, insurance, credit, and wealth-building opportunities—all through a trusted, assisted model.

DQ: How is Spice Money working towards increasing the participation of women Business Correspondents, and why is gender inclusivity critical for the success of rural fintech in India?

Dilip Modi: Gender inclusivity is key to driving deeper financial inclusion in rural India. Women Business Correspondents (BCs) not only enhance trust within communities but also help bridge the financial literacy gap, ensuring more women actively engage in banking and digital transactions

Spice Money’s Initiatives to Increase Women BC Participation:

Targeted Recruitment & Training Programs: Spice Money is actively onboarding women Adhikaris by offering customized training modules through Spice Money Academy, ensuring they are well-equipped to offer financial services. In 2024, over 2,950 women Adhikaris were trained across key financial products like AEPS, BBPS, and savings accounts.

Empowering Women Entrepreneurs: Women-led BC centers act as trusted financial hubs in rural areas, making it easier for other women to access banking, credit, and insurance services. Spice Money provides financial literacy workshops, guiding women in managing digital transactions efficiently.

Gender inclusivity is critical for rural fintech success. We have:
Higher Trust & Adoption: Women BCs are more likely to build stronger relationships within their communities, leading to higher financial service adoption.

Economic Upliftment: Increasing women’s participation in fintech boosts rural entrepreneurship and household financial stability.

Bridging the Gender Gap in Financial Access: A gender-inclusive BC network ensures that more women have access to savings, credit, and insurance, fostering long-term economic empowerment.

At Spice Money, we believe that empowering women as BCs is not just about inclusivity—it is a strategic move to build a financially self-reliant Bharat.