India to witness huge growth in digital lending: NITI CEO
According to Kant, India is economically poor but data rich and the future of the fintech sector in the country is extremely bright, COVID-19 pandemic has accelerated the acceptance of digital payments which is a huge opportunity to use data for lending and big growth will be seen in digital lending
India will witness huge growth in digital lending as the COVID-19 pandemic has increased the acceptance of digital payments, Niti Aayog CEO Amitabh Kant said on Wednesday.
Speaking at the virtual 'Global Fintech Fest', Kant further said, "India is economically poor but data rich and the future of the fintech sector in the country is extremely bright."
"COVID-19 pandemic has accelerated the acceptance of digital payments... There is a huge opportunity to use data for lending and big growth will be seen in digital lending," he added.
Pointing out that the government has been the biggest disrupter in fintech story, he said it has invested heavily in digital infrastructure to support and nurture innovation.
Kant also stressed that there is a need to digitise Micro, Small & Medium Enterprises (MSME) sector fast.
"Out of 60 million MSMEs, only 1.5 million MSMEs have adopted digital payment, " he said, adding there is a huge opportunity for fintech companies in the MSME sector.
Replying to a query on Merchant Discount Rate (MDR), Kant said there is need to solve the MDR issue and he asked representatives of the fintech sector to suggest the government what needs to be done.
In a bid to promote digital payments, last year the government waived MDR charges on Rupay and BHIM-UPI payments beginning January 1, 2020.