THe Blog

March 15, 2016

How To Kickstart The Economy

Nandan Nilekani, in this article, says "India has a unique opportunity to create a new and alternative credit infrastructure that can provide easy access to credit for millions of businesses and individuals, arising from the convergence of Aadhaar’s recent legislative legitimacy with regulatory innovation, technology and digitisation."

 

He says " the traditional banking system has struggled to make credit democratic and wounded balance sheets have become a major impediment to private investment, and thereby to a full-fledged economic recovery . But India has a unique opportunity to create a new and alternative credit infrastructure that can provide easy access to credit for millions of businesses and individuals, arising from the convergence of Aadhaar’s recent legislative legitimacy with regulatory innovation, technology and digitisation."

 

"Aadhaar will not only deliver minimum consumption levels to those who need it but make resources available from the subsidy saved from misdirection and fraud. However, there is another equally large and immediate opportunity that has now presented itself thanks to the future of Aadhaar being unequivocally settled; the use of the Aadhaar platform to revive credit and kickstart the Indian economy."

 

".....with JAM becoming ubiquitous, the distribution channel is in place for borrowers to access credit and transact on their smartphones. The India stack will enable paperless, presence-less and cashless transactions. Most importantly with so many digital data sources coming online ­ payment activity , social media, taxes, bill payments, etc ­ the electronic consent architecture of the India Stack would enable borrowers to harness their own data to demonstrate their track record to get a loan."

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