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Infosys Chairman: Technology Innovations to Reorder India's Supply Chain

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At the Global Fintech Fest 2022, Infosys Chairman Nandan Nilekani stated that technology innovations will fundamentally reorder the supply chain of India due to India’s digital stack such as credit enablement through United payment interface (UPI) and account aggregator (AA), and the Open Network of Digital Commerce (ONDC).

He believes that India's supply chain will become far more efficient and will make it far easier to reach products and services to everyone.

According to Nilekani the Reserve Bank of India’s AA system championed will revolutionize the credit and lending ecosystem.

In his address to the GF delegates, "Once the AA system is applied to credit and lending, it will make lending as simple as making a payment. At the same time, since it is based on data, it will be much more stable and risk-free”.

The network will allow retailers, suppliers and logistics players to participate in a democratised manner, and will have a big impact on how commerce is done because everybody in India will now be doing e-commerce.

As we go forward and as RBI gets more confident with this, they will open up to more forms of credit on UPI. Imagine what this system can do if there are 400-500 million people on UPI and if they get credit access online,” says Nilekani

In his words, “This will also have an impact on hyperlocal commerce and quick commerce”.

Nilekani believes that the launch of the latest offerings--UPI Lite, Rupay Credit Card linked to UPI and Bharat Bill Pay System—the integrated bill payment system—will democratize UPI even further.

The lending and payments ecosystem, he said, will benefit from the new solutions being rolled out and that will help a larger share of the population join the digital transaction ecosystem.
“Today we have about 260 million people using UPI, and with the launch of offline UPI (UPI offering) 123 we will add another 500 million to the payments system. Almost half a billion people in India will be doing digital payments,” he said.

He added that RuPay credit card's integration with UPI is the first step towards credit on UPI. “It is a very sensible step. As we go forward and as RBI gets more confident with this, they will open up to more forms of credit on UPI. Imagine what this system can do if there are 400-500 million people on UPI and if they get credit access online,” says Nilekani.

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