SUMMARY
Nilekani believes that UPI has the potential to reach around half a billion people in the country
When the AA system is applied to credit and lending, it will make lending as simple as making a payment: Nilekani said
He also stated that ONDC will impact hyperlocal commerce and quick commerce
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Speaking at the Global Fintech Fest 2022, Infosys chairman Nandan Nilekani stated that tech innovations within India including the united payment interface (UPI), open network for digital commerce (ONDC) and the account aggregator (AA) framework will reorder the Indian supply chain.
He added that UPI and AA together will also revolutionise the credit and lending ecosystem. “When the AA system is applied to credit and lending, it will make lending as simple as making a payment,” he said.
Nilekani, who is an advisor on NPCI’s board, also complimented the UPI-parent of the latest offerings such as UPI lite, credit card linking, Bharat Bill Pay System and even UPI123Pay.
With UPI, credit card linking and UPI on feature phones, Nilekani believes that UPI has the potential to reach around half a billion people in the country. “Giving the 400 Mn UPI users access to native credit products like BNPL will further democratise the consumer use of credit,” he added.
“India’s supply chain will become far more efficient and will make it far easier to reach products and services to everyone,” he said, adding that ONDC is likely to impact hyperlocal commerce and quick commerce.
The comment comes at a time when India is amid rapid technological advancements in the field with the said technologies.
UPI has been recording nearly $10 Bn worth of transactions every month, and ONDC is gearing up for a launch. The account aggregator framework is likely to make data sharing between financial institutions easier and more reliable.
The physical event, organised by the NPCI, Payment Council of India and Fintech Convergence Council, called for ‘Creating A Sustainable Financial World – Global, Inclusive & Green’ and saw several dignitaries and industry players in attendance. The finance ministry and the Reserve Bank of India alongside the International Financial Services Centres Authority also collaborated for the event.
Prime Minister Narendra Modi also spoke at the event and called for the startups within the fintech sector to innovate and bring safety and reliability to their platforms. Finance Minister Nirmala Sitharaman also asked startups and regulatory bodies to work hand-in-hand to develop a ‘sustainable’ financial environment.
The event also marked the launch of UPI on RuPay Credit Cards and cross border bill payment system. Further, the RBI governor also spoke on the importance of due diligence and NPCI reminding the fintech ecosystem of its looming TPAP deadline.
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