ONDC and UPI will make supply chain more effective, says Nandan Nilekani

He said, in a speech at the Global Fintech Fest 2022, that the supply chain will become lot more effective and would make it much easier to get goods and services to everyone

September 21, 2022 8:52 IST | India Infoline News Service

According to Infosys Chairman Nandan Nilekani, technological advancements brought on by India's digital stack will fundamentally reorder the country's supply chain. Examples include credit enablement through the United Payment Interface (UPI) and account aggregator (AA), as well as the Open Network of Digital Commerce (ONDC).

Nilekani stated at the Global Fintech Fest 2022 that India's supply chain will become much more effective and would make it much simpler to reach everyone with goods and services. He continued by saying that the Reserve Bank of India's AA system will completely alter the credit and lending landscape.

"Lending will be as straightforward as making a payment once the AA system is applied to credit and lending. Speaking to the GFF delegates, he said that because it is based on data, it would also be far more stable and risk-free.

He asserted that since everyone in India now engages in e-commerce, the network will allow retailers, suppliers, and logistics companies to participate in the market democratically and significantly impact how business is conducted. This would also have an impact on hyperlocal company, he added.

According to Nilekani, the recent addition of UPI Lite, the Rupay Credit Card integrated with UPI, and the Bharat Bill Pay System would further democratise UPI.

260 million people now utilise UPI, and 500 million more will sign up if offline UPI (UPI product) 123 is made available. In India, he estimates that 500 million people will adopt digital payments.

The integration of the RuPay credit card with UPI, he continued, is the first step toward credit on UPI. It's a pretty smart move. RBI will become more open to further types of credit on UPI as time goes on and they gain confidence in this. Imagine the potential of this system if 400–500 million people use UPI and have online access to credit, added Nilekani.

For feedback and suggestions, write to us at editorial@iifl.com

Invest wise with Expert advice



Open Demat Account

Invest wise with Expert advice

By continuing, I accept the Terms & Conditions and agree to receive updates on Whatsapp