Should India Establish a National Financial Grid for Unified Credit and Digital Infrastructure?
Click to start listening
Synopsis
State Bank of India's Chairman, C.S. Setty, has proposed a revolutionary National Financial Grid to connect India's financial ecosystem. This initiative aims to enhance digital lending, improve risk assessment, and streamline data sharing. In a rapidly evolving digital landscape, will this grid redefine India's financial infrastructure?
Key Takeaways
- National Financial Grid: A proposed framework to unify India's financial infrastructure.
- Enhanced Digital Lending: Aims to boost efficiency and trust in lending processes.
- Importance of Employee Training: Technology must be accompanied by proper education and user engagement.
- MSME Focus: Increased lending for MSMEs driven by digital data accessibility.
- Collaboration with Regulators: SBI's commitment to work with government bodies for smoother KYC processes.
Mumbai, Nov 18 (NationPress) The Chairman of the State Bank of India (SBI), C.S. Setty, has advocated for the establishment of a National Financial Grid designed to seamlessly link crucial elements of India’s financial framework. This includes credit bureaus, fraud registries, eKYC services, UPI, and the account aggregator system.
During his address at the CII Financing Summit in Mumbai, Setty emphasized that a centralized financial grid would invigorate digital lending, improve risk evaluation, and facilitate smoother data interchange among various institutions.
He noted that the Unified Lending Interface (ULI) could serve as a transformative foundation for this proposed national financial grid.
Setty further elaborated that such a system would provide a single open-access infrastructure layer for the entire ecosystem. He illustrated how integrating a common digital framework for fraud and risk management would significantly boost the trustworthiness of lending operations.
The SBI Chairman also remarked that there has been a notable increase in MSME lending over the past five years, driven primarily by the availability of digital data and advanced technological infrastructure.
However, he cautioned that technology alone cannot suffice. He stressed the importance for banks to concentrate on re-skilling and reshaping employee orientation, as digital tools and mobile applications can be ineffective if users do not fully comprehend or adopt them.
These comments come in light of the rapid growth of India’s digital public infrastructure and the rising demand for more integrated, transparent, and secure financial systems.
Last month, Setty announced that the bank is working on making Know Your Customer (KYC) and re-KYC processes more user-friendly.
While speaking to reporters at the Global Fintech Fest 2025, he added that SBI would collaborate closely with regulators and the government to enact these changes.
“We are working to simplify KYC processes. Even if it requires engaging with regulators and the government, SBI is taking the initiative to make the entire KYC process more accessible,” Setty affirmed.
“I believe that banks like SBI excel in acquisition and financing,” he concluded.
Point of View
The proposal for a National Financial Grid by SBI's C.S. Setty presents an exciting opportunity for India. By fostering integration and enhancing transparency, this initiative could significantly impact digital lending and risk management. As we navigate this transition, a focus on employee education and user-friendly processes will be crucial in realizing the grid's potential.
NationPress
18/11/2025
Frequently Asked Questions
What is the proposed National Financial Grid?
The National Financial Grid is a proposed infrastructure to connect key components of India's financial ecosystem, such as credit bureaus and eKYC facilities, aimed at enhancing digital lending and risk assessment.
How will the National Financial Grid impact digital lending?
By creating a seamless connection among financial entities, the grid is expected to streamline processes, improve risk evaluation, and boost the efficiency of digital lending.
What role does technology play in this proposal?
While technology is essential for the grid's implementation, C.S. Setty emphasizes that banks must also focus on employee training and user understanding to maximize its benefits.
