Laya Madduri, Secretary, Government of Assam said that financial inclusion is a critical issue that demands our attention. Microfinance institutions play a crucial role in filling the void to provide financial services in rural areas.
Madduri at the 2nd National Summit on Financial Inclusion – “Accelerating Tech-Driven Financing to the Unbanked.” The national summit was organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) in Guwahatiunderscored, “Even those with access to financial resources often lack clarity on saving for the future. This is a concern we must address, especially for the rural population.”
Madduri discussed challenges faced during the implementation of a housing scheme a decade ago. She emphasised, “Creating an ecosystem that facilitates financial transactions, especially in rural areas, is vital for inclusive growth.”
Addressing challenges in Assam’s tea gardens during demonetisation, Madduri stressed the need for increased awareness and confidence in digital transactions. She stated, “Improved banking penetration is essential to ensure the success of initiatives transitioning to online transactions.”
She linked financial inclusion with climate change resilience. Recognising Assam’s vulnerability, she stated, “Financial services, including insurance, play a crucial role in improving resilience and mitigating the impact on rain-fed agriculture.”
Pramod Rao, Executive Director, Securities and Exchange Board of India (SEBI) emphasised technology’s pivotal role in financial inclusion during the summit. Collaborating with entities like Ispirit, he highlighted their impact on lending opportunities in government e-marketplaces. Rao stressed finance as a growth engine, expressing, “Finance is an engine of growth akin to wind beneath the wings that give fuel to the flights.”
Identifying obstacles, he praised the Jam Trinity – Aadhaar, mobile, and Jan Dhan accounts – for bringing the unbanked into the formal system. Acknowledging challenges in bank reluctance, Rao introduced the account aggregator system, empowering consumers, remarking, “The account aggregator system is a means of harnessing the benefits of Jam Trinity and is entirely digital.” He advocated overcoming language barriers with Bhashini, promoting comprehensive financial solutions, and proposed transforming savers into investors, stating, “It’s time to transform savers into investors.”
Sumeet Kaur Kapoor, Executive Director of the Pension Fund Regulatory & Development Authority (PFRDA), stressed the need to redefine financial inclusion, stating, “It should extend beyond banking to frequent use of bank accounts, diverse payment systems, and various financial products.” Emphasising the often-neglected pension sector, Kaur noted, “Longevity is increasing, and we can’t solely rely on familial support in old age; it’s essential to invest in building a pension fund.”
Addressing the demographic shift, she commended the government for launching the National Pension System (NPS) in 2003, anticipating the peaking of India’s demographic dividend in 2040. Discussing technology’s impact, Kaur highlighted, “The ‘Jam Trinity’ played a crucial role in onboarding six crore subscribers.” She emphasised the tech-driven efficiency of the NPS, stating, “From Digi Locker for onboarding to QR code-enabled UPI for contributions, technology streamlines the entire subscriber journey.” Kaur encouraged feedback for improvement, particularly in reaching underserved areas, asserting, “We aim to make the journey easier through technology.”
Shachindra Nath, Co-Chairman, ASSOCHAM National Council for NBFC & Infrastructure Financing and VC & MD, UGRO Capital Ltd stated, “India is converging into a digital Bharat.” Emphasising the transformative impact, he said, “Our digital footprint reaches far beyond places with no traditional connectivity.” Highlighting the “JAM Trinity” (Jandan account, Aadhar, and Mobile), he noted its role in reaching every Indian. Discussing the digital ecosystem shift, he added, “There is a titanic shift happening in the digital ecosystem, from MSME to the creation of Odium account aggregation, GST, and digital banking.” Pointing to UPI’s global impact, he mentioned, “Unified Payments Interface (UPI), managed by National Payments Corporation of India (NPCI), has taken the world by storm, leading to similar solutions in developing countries.”
