India Bets on Digital Banking to Improve MSME Access to Finance
India, a world leader in digital p ayments and fintech innovation, is entering the next phase of its digital finance transformation, now eyeing the prospects of digital banking to address the credit gap faced by micro, small and medium-sized enterprises (MSMEs).
The government is said to be readying a framework that would allow MSMEs to more easily and securely obtain digital credit, information technology minister Ashwini Vaishnaw said on February 09, 2023, quoted by the Financial Express.
“We are working on a Reserve Bank of India (RBI)-regulated framework so that digital credit also becomes secure and reliable like the country’s digital payment system,” Vaishnaw said, adding that even small businesses like street vendors would be able to access credit. “This year, we will be rolling out digital credit and the National Payments Corporation of India (NPCI) will take a big lead in that. Over a period of the next 10 to 12 months, a good construct of digital credit will be created.”