Digital India Is Transforming Financial Landscape: Experts At Assocham Summit

At the 19th Annual Summit and Awards for Banking & Financial Sector Lending Companies organised by Assocham, key speakers discussed the transformation of India's economy into a digital ecosystem. Sumnesh Joshi, Deputy Director General at the Ministry of Communications, spoke about the significance of the Jan Dhan, Aadhaar and Mobile (JAM) trinity in facilitating access to financial services. He noted the rapid rollout of 5G and the country's advancements toward 6G, emphasising that every citizen now has access to a bank account.

Joshi stressed the importance of leveraging this ecosystem to enable innovative services, including microcredit and insurance products. He also mentioned the possibility of conducting transactions without smartphones or QR codes, suggesting Aadhaar-based payments as a crucial next step. He called for enhanced collaboration among ecosystem partners for real-time data sharing to combat fraudulent activities, including international scams posing as domestic calls.

Former Reserve Bank of India Deputy Governor R. Gandhi focused upon the need for a diverse array of financial institutions to propel India toward becoming a developed nation by 2047. He advocated for licensing more banks and finance companies, encouraging a mix of large and niche banks to cater to various financial needs. Gandhi pointed out that substantial capital infusion is essential and that debt and equity markets must play a pivotal role in financing the economy.

Rajkiran Rai G, Chairman of Assocham’s National Council for Banking, discussed the need for banks to adopt technology, particularly artificial intelligence and machine learning, to improve credit assessment models. He urged banks to focus on attracting younger clients and evolving into comprehensive financial hubs rather than merely acting as intermediaries.

In closing, Nipa Sheth, Chairperson of the Assocham National Council for Corporate Bond Market, acknowledged the significance of the discussions among industry leaders and policymakers. She expressed optimism that the outcomes from the summit would serve as a catalyst for further growth in the financial sector.