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Informist, Wednesday, Oct. 8, 2025

 

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--SBI Setty: Looking to make line of credit on UPI available to farmers 
--CONTEXT: SBI Chairman Setty's comments at Global Fintech Fest 
--SBI Setty: Must strengthen collection before expanding credit line on UPI 
--SBI Setty: Banks, regulators need to simplify KYC process further 
--SBI Setty: Engaging with regulators to simplify KYC processes 
--SBI Setty: Tech-ready for new ECL norms, long transition time to help 
--SBI Setty:Funded overseas boyouts, domestic funding to not be any different 
--SBI Setty: Technologically ready for new expected credit loss norms 
--SBI Setty:Expected Credit Loss transition time to prevent balance sheet hit 
--SBI Setty: Funded overseas buyouts, domestic funding to not be any different

 

MUMBAI – State Bank of India plans to make a line of credit available to farmers on Unified Payments Interface, Chairman C.S. Setty said Wednesday. But the bank needs to strengthen its loan recovery framework before expanding to credit on UPI, he added.

 

According to Setty, the next generation of financial inclusion reforms must entail providing qualitative services to customers. The current wave of reforms for financial inclusion, which includes the government's Pradhan Mantri Jan Dhan Yojana, Aadhaar digital identity, and mobile connectivity, also known popularly as the JAM trinity, have shown teriffic success and it is time to move to the next generation of reforms, Setty said at the Global Fintech Fest.

 

 

The next generation of reforms should also include further simplification of the know-your-customer norms, Setty said. In fact, SBI, on behalf of the entire banking sector, is also engaging with the regulator for further simplification of KYC norms, Setty added.

 

Further, commemting on the Reserve Bank of India's announcement to relax norms for banks' financing of mergers and acquisitions, Setty told mediapersons that his bank has financed acquisitions overseas in the past. Domestic financing of acquisition should not be very different, Setty said.

 

The RBI proposed a review of capital market exposure guidelines for banks last week. Under the review, the RBI had proposed to provide an enabling framework for banks to finance acquisitions by Indian corporates. The RBI had also proposed to enhance the limit for lending by banks against shares, units of real estate investment trust, and units of infrastructure investment trust while removing the regulatory ceiling altogether on lending against listed debt securities. 

 

Setty also mentioned that SBI is ready for the Expected Credit Loss norms, also announced by the RBI last week. A longer transition time to implement the norms can help banks safeguard their balance sheets from any potential negative impact due to the new norms, Setty said. The central bank has proposed to replace the extant framework  based on incurred loss with an Expected Credit Loss approach, subject to a prudential floor, while retaining the existing asset classification norms.  End

 

Reported by Krity Ambey and Aaryan Khanna

Edited by Avishek Dutta amd Akul Nishant Akhoury

 

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