MUMBAI, India — State Bank of India (SBI) Chairman C.S. Setty has proposed establishing a National Financial Grid designed to interconnect key elements of India’s financial infrastructure, including credit bureaus, fraud registries, eKYC platforms, Unified Payments Interface (UPI), and the account aggregator framework.
Speaking at the CII Financing Summit in Mumbai on Monday, Setty said that such an integrated grid would streamline digital lending, enhance risk assessment capabilities, and facilitate seamless data flow across financial institutions.
Central to the proposed system, Setty suggested, is the Universal Loan Identifier (ULI), which could serve as the backbone for the financial grid by providing a unified, transparent layer for data sharing and fraud detection.
“Embedding a common digital framework for fraud and risk management would significantly enhance the reliability of lending operations,” he said. “A single financial grid would act as one open-access infrastructure layer, allowing the entire ecosystem to function more effectively.”
Setty also noted that the growth in MSME lending over the last five years has been fueled by improved digital access and availability of real-time financial data. However, he cautioned that technology alone is not enough, and banks must prioritize re-skilling employees and increasing digital literacy among customers to ensure the tools are used effectively.
“Digital tools and mobile applications are only valuable if both staff and customers can adopt and utilize them properly,” Setty added.
His remarks come amid India’s rapid progress in digital public infrastructure and rising demand for more integrated financial systems that are transparent and secure.
Last month, Setty revealed that SBI is working to simplify Know Your Customer (KYC) and re-KYC processes. Speaking at the Global Fintech Fest 2025, he said the bank plans to collaborate with regulators and the government to make these processes more user-friendly.
“We are taking the initiative from SBI’s side to make the entire KYC process easier, even if it means engaging with regulators and the government,” he stated.
Setty also expressed confidence in SBI’s experience managing large-scale customer acquisition and financing operations. (Source: IANS)
