Mumbai: State Bank of India (SBI) Chairman C.S. Setty on Monday proposed the creation of a National Financial Grid to seamlessly connect key components of India’s financial ecosystem, including credit bureaus, fraud registries, eKYC facilities, UPI and the account aggregator framework.
Addressing the CII Financing Summit in Mumbai, Setty said that a single financial grid will give digital lending a fillip, enhance risk assessment, and smoothen data flow across institutions.
He highlighted that the ULI could act as a transformative backbone for this national financial grid.
Setty added that such a system would serve as one open-access infrastructure layer for the whole ecosystem. He showed how embedding a common digital framework for fraud and risk management would further enhance lending operations’ reliability.
The SBI chief also observed that MSME lending has witnessed a renewed push over the last five years, driven by the availability of digital data and improved technological infrastructure.
However, Setty stressed that technology alone is not enough. He said banks must focus on re-skilling and reshaping employee orientation, as digital tools and mobile applications fail to deliver impact if staff and customers do not fully understand or adopt them.
His remarks come amid the rapid expansion of India’s digital public infrastructure and the growing demand for more integrated, transparent and secure financial systems.
Earlier last month, Setty informed that the bank is working on simplifying the Know Your Customer (KYC) and re-KYC processes to make them more user-friendly.
Speaking to reporters on the sidelines of Global Fintech Fest 2025, he added that SBI will work closely with regulators and the government to bring these changes.
“We are working on the simplification of KYC processes. Even if it means engaging with regulators and the government, we are taking the initiative from SBI’s side to make the entire KYC process easier,” Setty told reporters.
“I think banks like SBI are well-versed in acquisition and financing,” he added.
(IANS)
