Bankers are being asked to build a solid framework for easy loan availability, according to the IT minister

Minister of Information Technology Ashwini Vaishnaw urged the financial industry to develop a new digital platform for delivering quick and easy loans to MSMEs, small company owners, and individuals at the bottom of the economic pyramid.

On Sunday, IT Minister Ashwini Vaishnaw urged the banking industry to develop an innovative digital platform for delivering quick and easy loans to MSMEs, small businessmen, and individuals at the bottom of the pyramid that is as powerful, smooth, and robust as UPI.

Given the robust ecosystem of Aadhaar, mobile phones, UPI platform, and Digi locker, he said the building blocks required to develop such a platform are already available, and he challenged the banking industry to come up with fresh ideas and solutions in three months.

Vaishnaw was speaking at the ‘Digital Payment Utsav,’ which was part of the ‘Azadi ka Digital Mahotsav,’ a week-long exhibition of India’s digital successes in the capital.

“Can we construct a platform as powerful, frictionless, good, as digital as the UPI platform for delivering very rapid and easy credit to the MSME, small industries, little businessmen…people actually at the bottom of the pyramid?” the minister said, posing a “challenge” to the bankers in the audience.

In response to his question, the minister stated that he is open to considering promising solutions that are presented after three months.

“Today, you have a good ecosystem with Aadhaar, mobile phones, UPI platform, digilocker, and nearly anything else you need to build this ecosystem is accessible.”

Take this challenge…work on it for the next three months, then come back and I’ll be pleased to spend an entire day with you looking at the concepts you bring,” Vaishnaw stated.

On the sidelines of the event, the minister told reporters that the goal is to ensure that individuals at the bottom of the pyramid have access to accessible loans on good terms through a streamlined process, particularly micro and small companies, tiny businessmen, and street sellers.