New Delhi/Mumbai, 30 September 2021: “Technology-led growth will be where India will be most distinctive and different from the rest of the world, including the developed nations,’’ Dr Krishnamurthy V Subramanian, Chief Economic Adviser, Ministry of Finance, Government of India said, adding that the government is giving a major push and is creating digital infrastructure as a public good.
He said that private sector is unwilling to create physical public goods, and even when they do, they tend to monopolise it and make it very expensive, which becomes inaccessible for the common man. “That is why creating the digital infrastructure for India is so important,’’ he added.
Underscoring the importance of personal data on financial transactions like that present with an account aggregator, he pointed out, can be used by banks and other financial institutions to give credit to the unbanked and also help in the labour market, by giving certification based on his/ her past records. It allows financial institutions to understand whether a person pays back his loans in time or his credit history.
This will allow the financial sector to give credit to those who have been out of the credit market for the past 75 years and help in pushing the GDP growth in the country. It will also bring in lot of people in the organised labour market because of the use of data. “So, there are huge opportunities for data as a public good. That is what we have invested in India. It can be a great disrupter,” he added. The same data can be used to increase mutual fund, insurance penetration in the country
He also emphasised the need to invest and use data- intensive modelling among banks and financial institutions not just for retail lending but also to widen the scope to include SME lending, corporate lending and large ticket lending. By joining hands with the banks, they can become far more profitable. He urged banks and financial institutions either to build these data-analytical model themselves or join hands with FinTech companies to provide credit to the retail sector.
He also talked about ethical wealth creation for the public sector and not just wealth creation to become long-term, sustainable players. The private sector should focus on sustainable capitalism, he added.
Talking on technology-based growth, Shri P Vasudevan, Chief General Manager, Payments and Settlement Systems, Reserve Bank of India, said that the easy access to technology is driving growth like never before. “In the last 15 months, we have witnessed 85% growth in daily transactions with 185 million transactions per day from 100 million transactions. If compared with the five-year ago figure, there’s an eight-fold increase from 23 million transactions per day, which is remarkable.”
The Global FinTech Fest, organised by Fintech Convergence Council (FCC) and Payments Council of India (PCI), of Internet and Mobile Association of India (IAMAI), and the National Payments Corporation of India (NPCI). The three-day conference was attended by about 26,000 delegates from across the country.
About Internet and Mobile Association of India (IAMAI)
Internet and Mobile Association of India [IAMAI] is a young and vibrant association with ambitions of representing the entire gamut of digital businesses in India. It was established in 2004 by the leading online publishers, and in the last 16 years has come to effectively address the challenges facing the digital and online industry including mobile content and services, online publishing, mobile advertising, online advertising, ecommerce and mobile & digital payments among others. Sixteen years after its establishment, the association is still the only professional industry body representing the online industry in India. The association is registered under the Societies Act and is a recognized charity in Maharashtra. With a membership of nearly 300 Indian and overseas companies, and with offices in Delhi, Mumbai, and Bangalore, the association is well placed to work towards charting a growth path for the digital industry in India.
About Payments Council of India (PCI)
Payments Council of India was formed under the aegis of IAMAI in the year 2013 catering to the needs of the digital payment industry. The Council was formed inter-alia for the purposes of representing the various regulated non-banking payment industry players, to address and help resolve various industry level issues and barriers which require discussion and action. The council works with all its members to promote payments industry growth and to support our national goal of ‘Cash to Less Cash Society’ and ‘Growth of Financial Inclusion’ which is also the Vision Shared by the RBI and Government of India. PCI works closely with the regulators i.e. Reserve Bank of India (RBI), Finance Ministry and any similar government, departments, bodies or Institution to make ‘India a less cash society’.
About Fintech Convergence Council (FCC)
About Fintech Convergence Council (FCC) FCC is formed under Internet and Mobile Association of India (IAMAI) and represents the FinTech industry and traditional companies in the BFSI space. The purpose of the council is to encourage collaboration, seek complementarities and build synergy between leading BFSI companies and the emerging FinTech start-ups. The council has worked towards interpreting the regulatory and legal framework, aggregating the concerns and feedback of the various players within the larger FinTech community, communicating it to regulators and lawmakers, and organizing events and gatherings for the industry participants to meet, share ideas and work together in the interest of creating a safer, more open and more collaborative operating environment through a transparent forum
About National Payments Corporation of India (NPCI)
National Payments Corporation of India (NPCI) was incorporated in 2008 as an umbrella organization for operating retail payments and settlement systems in India. NPCI has created a robust payment and settlement infrastructure in the country. It has changed the way payments are made in India through a bouquet of retail payment products such as RuPay card, Immediate Payment Service (IMPS), Unified Payments Interface (UPI), Bharat Interface for Money (BHIM), BHIM Aadhaar, National Electronic Toll Collection (NETC Fastag) and Bharat BillPay. NPCI also launched UPI 2.0 to offer more secure and comprehensive services to consumers and merchants. NPCI is focused on bringing innovations in the retail payment systems through use of technology and is relentlessly working to transform India into a digital economy. It is facilitating secure payments solutions with nationwide accessibility at minimal cost in furtherance of India’s aspiration to be a fully digital society.