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Informist, Monday, Jul 22, 2024

--EconSurvey: Must review regulatory gaps, benchmark with global norms

--Need fast-paced move to online payments svcs, e-commerce 

--Must move to data-based lending vs judgment-based lending 

--Public, pvt fincl firms must become customer-centric 

NEW DELHI – Regulations in India need to be reviewed continuously to identify the gaps and benchmark these with the best global practices, according to the Economic Survey for 2023-24 (Apr-Mar) tabled in the Parliament today. All regulators should evolve an approach towards common user data for things like KYC (know your customer), the survey said. 

In the medium term, efforts need to be made to move towards data-based lending instead of judgement-based lending, especially for small businesses, the survey said. Regulatory gaps need to be plugged in order to achieve this, it added. 

Financial sector firms, irrespective of public or private ownership, must become customer-centric to perform well in quantitative metrics, according to the survey. This was said in the context of the vision of India becoming a 'fintech nation' with the highest number of fintech firms and the highest fintech adoption rate by incumbents fuelled by digital public infrastructure. 

India's vision of a 'fintech nation' needs to incorporate the next big steps in the near future. In the coming years, the likes of artificial intelligence/ machine learning (AI/ML), decentralised finance, Internet of Things (IoT), and others that have a vast potential to disrupt the digital payments ecosystem, are likely to be the next big steps the survey said.  

Further, talking about India's recovery post the COVID-19 pandemic, the survey said that there is a transformation in domestic service delivery systems and their demands. All significant businesses, personal and financial, and infrastructure-based services have recovered strongly from the pandemic. 

However, there is a need for a fast-paced shift towards digital services like online payments, e-commerce, and entertainment platforms, as well as the increase in the demand for high-tech services as inputs to other productive activities, the survey said. 

There is a need to enhance the country's vocational and educational ecosystem further in order to equip India's labour force with required digital skills in a time-bound manner, the survey said.  End

Reported by Kabir Sharma

Edited by Deepshikha Bhardwaj

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