GSTN is a great example of technology-led cooperative federalism: Nandan Nilekani
At the FICCI committee meeting, Nilekani, co-Founder & Chairman of Infosys Technologies said data empowerment architecture in India will benefit all segments of the economy
Published - 23-April-2019
Nandan Nilekani, Co-Founder and Chairman of Infosys Technologies spoke on ‘Digital India and its impact on Economy and Industry' addressing the Federation of Indian Chambers of Commerce & Industry (FICCI) members at the National Executive Committee Meeting in Bengaluru.
He said that India’s digital infrastructure will play a major role in reviving the economy.
Speaking on Aadhaar card and Direct Benefit Transfer (DBT), he said, “Aadhaar became the basis of Direct Benefit Transfer. When you open a bank account with Aadhaar ID it becomes an Aadhaar linked bank account and today we have 1 billion Aadhaar linked bank account and this provides the basis for DBT. This is the real-time system for the payments. India runs world’s largest cash transfer system today.”
He added, “The underlying technology for all the scheme is DBT. Now, we have infrastructure to do seamless payments to people’s accounts. DBT has unlocked the subsidy from the product. The subsidy of a product is put directly into the bank account which gives a boost to the banking system.”
He said that the country has witnessed dramatic transformation through Aadhaar-based e-KYC and online payments, adding that India’s digital data architecture will set the tone for business revival.
“Once data becomes the basis for decision-making in many sectors, you will see a big change,” said Nilekani.
“World over, data is becoming central to people and government. Data empowerment architecture in India will benefit all segments of the economy,” he said.
Nilekani said that Aadhaar e-KYC has been revolutionary in making life simpler for people and India now has the infrastructure to deal with DBT in any segment.
Nilekani also said that Goods and Services Tax (GST) has increased the number of taxpayers. “GSTN is a great example of technology-led co-operative federalism,” he said and also added that RFID tags linked to bank accounts is another big reform.
Speaking on the National Payment Corporation of India (NPCI) he said, “NPCI which is formed by the Reserve Bank of India has banks as shareholders. One of the big things NPCI has done in recent times is an ability to do instant credit to someone using a bank account, which is called immediate payment system. It’s a valuable system for Indians especially migrants.”
He further added, “Witnessing the growth of e-commerce and mobile payments, NPCI has developed a modern payment system called Unified Payment Interface (UPI). It’s a state of the art payment system which is real-time. It has been a tremendous success and has done a transaction of 800 Million last month. The design of UPI is a combination of banking system with innovation.”For more updates, subscribe to exchange4media's WhatsApp Channel- https://bit.ly/2QUdLCK