Pune: Banks should tap into the digital footprints generated by unified payments interface ( UPI ) in order to expand their balance sheets, union finance minister Nirmala Sitharaman said in Pune on Thursday. "So I would like to think that the potential of the Indian banking system rests on one particular feature of UPI. Actually giving us the advantage is something you can plan for the future," she said while speaking at the 90th foundation day of Bank of Maharashtra .
Launched in 2016, UPI has played an important role in transforming retail digital payments as 45% of the total real-time digital payments taking place globally happen in India, Sitharaman said. As per National Payments Corporation of India data, the number of UPI transactions in India increased to 1,496 crore in August compared to 1,444 crore in the previous month. In value terms, the platform saw transactions of Rs 20.
60 lakh crore in August. The minister said UPI is no longer just for India and seven countries — Bhutan, Nepal, Sri Lanka, France, Singapore, UAE and Mauritius — are using the digital platform. Highlighting the need for the adoption of technology by banks, Sitharaman said it can be used for risk mitigation and improved customer service, credit assessment, and fraud detection.
"Big data analytics can be used to offer customised products. Banks need to target particular groups." She pointed out that banks should handhold businesses to come out of the stress rather than waiting for them to colla.