The report discloses that India’s top fintech start-ups will be playing a key role in “Project Kashi” also known as “The Kashi Vishvanath Dham project”, locally called the corridor project, involves creating a high-class tourism destination in the 400 meter stretch from the famous Kashi temple and the Ganga river.
The report also tries to say that the Fintech start-ups within the country are trying to develop a favourable platform for them to survive as well as to improve their growth and business through DBT data and other available resources like demographics and micro-finance institution loan history that will help to assess the creditworthiness and issue loans directly in bank accounts by minimizing the overtime consumption of the banking procedures. The NITI Ayog is also effectively discussed in this that how it can be effectively used in this area for further growth and extensions.
Leading entrepreneurs in the country attended the PM Narendra Modi’s review meeting on Friday told TOI. In the meeting, they discussed how DBT could be leveraged significantly to disburse loans based on EMI that people will receive and the same can be retrieved over longer periods in instalments after the Covid-19 crisis. These loans can be availed by people like street vendors, garage owners, among others who are facing a capital crunch triggered due to their work coming to standstill. The loan amounts could be anywhere in between Rupees 30000 – 60000 said the people who attended the meeting.
It is mentioned that those who avail loans through DBT don’t have access to bank capital easily and the recovery of loans could be varied as per institutions. Thus, this platform enables access to data and very low cost of recovery – this is a key factor of fintech. Fintech companies have already started works to integrate and their policies and scheme will review again by the PM with a month. Because PM Modi is very much diligent towards leverage technology to enable low-cost, zero-touch lending, and zero-fraud risks. For the current fiscal, the total DBT is over Rs 81000 crore with over 60 crore beneficiaries according to the government data.
It is said that this would be an app-based platform. Sanctioning of the loan will only take 5 mins and Aadhaar Card will the important identifier for this and there will collaborations with banks also. It is said that the initial lending’s will be done through public sector banks.
The meeting with PM was attended by many start-ups like PhonePe, Pine Labs, IndWealth, NPCI, Kissht, etc.
For the further reach of other financial services and products like insurances would be enabled through KYC Sethu, which will act as a repository for existing KYC’s and eventually it will remove the need to do KYC all over again to buy new insurance amid the pandemic and the main aim of the government is to promote the platform Made-In-India to address the hurdles amid Covid-19.
