The Indian government is working on developing a joint national portal to host various government systems and services, as well as protection products – all accessible with a single click, said Sanjeev Kaushik, the additional secretary in the Department of Financial Services.
The Department of Financial Services has been working on a national joint portal for various government systems and benefits, where citizens can access various financial products, various insurance company protection products and various benefit systems through just a single portal with a single click – Sanjeev Kaushik , additional secretary in the Department of Financial Services of the Treasury
Kaushik, who spoke at the 3rd Economic Times BFSI (ETBFSI) Conclave on “Leveraging Digital Power for Promoting Financial Inclusion”, also said the government will introduce digital lending at a later date. “Not only collateral-based but also cash-based loans and savings products are hosted on this single national platform,” said Kaushik.
Fintech plays an important role in developments: Kaushik
The additional secretary said fintech players have provided the government with analytics and tools by enabling the former to enforce various financial products through digital platforms.
Aside from helping develop the shared finance plans portal, Kaushik added that fintechs are also working with the Treasury Department on the Aspirational Districts program, Project Kashi (Cash-over-Internet).
For the Kashi project, he added, the government has launched a pilot project in Varanasi that will connect account holders with various options for recurring online time deposits and targeted savings plans.
Cash on the Internet: Kaushik said the government wants to conduct a risk-based assessment of cash flows on accounts of beneficiaries who receive DBTs from the government through various systems.
“If you make an estimate of the inflows and outflows, various finance bank and financial institution providers can tailor and offer loans, small loans, maybe Rs 20-25,000 online through digital platforms on these accounts,” said Kauschik.
‘Want to increase UPI transactions tenfold in 3 years’
“In 2021, more than 2.25 million euros were processed through digital platforms and payment services worth more than 41 million rupees. According to UPI, in June of this year we touched a number of 200 crore transactions per month. The amount we reached in June was up to Rs 5 lakh crore. Our goal is to reach ten times this figure in the next 3 years, ”said Kauschik.
That said, only 30% of adults across the country had access to bank accounts and financial services in 2013, Kaushik said. India’s financial inclusion, as measured by the number of adult bank accounts, reached more than 70%, according to a 2017-18 report by the World Bank.
“In less than five years, we have more than doubled the parameters of financial inclusion, including access to banking services across the country,” said Kaushik.
UPI transaction up 2.1x in July 2021: NPCI data
The transaction value on the Unified Payments Interface (UPI) was 6.06 lakh crores in July 2021, 2.1x higher than in the same month of the previous year, according to data published by the National Payments Corporation of India (NCPI). Overall, the transaction volume rose 2.2 times over the previous year to 3.24 billion in July. While the UPI payment volume increased by 15.4% in July 2021 compared to the previous month, the UPI transaction value increased by 10.8% compared to June.
Increase from June: The number of transactions increased by 432.5 million in July, while the total amount increased by 58,907.8 billion rupees. In the previous month (June 2021) the transaction volume had increased by 267.9 million and the transaction amount increased by 56,734.5 billion rupees.
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