Digital lending helped push financial inclusion

Mumbai: Digital lending has boosted financial inclusion, especially helping borrowers otherwise unlikely to benefit from formal finance, Reserve Bank of India deputy governor N.S. Vishwanathan said.

Speaking at the 12th Mint Annual Banking Conclave, Vishwanathan said digital lending could benefit a host of people and sectors including self-employed, small and micro enterprises and small borrowers deemed uneconomical by the formal sector.

“For the savers, this provides another window of opportunity to get better returns and in doing so, the segment will help bring the informal sector into the formal sector,” Vishwanathan said, adding that increasing efficiency to lower cost and improving credit assessment is yet another positive.