Speaking at the 12th Mint Annual Banking Conclave, Reserve Bank of India deputy governor N.S. 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.

“The segment can be viewed as an alternative lending channel from a systemic perspective which could be leveraged for the broader attainment of financial and economic goals. While this movement from traditional to digital lending could be seen as a disintermediation of sorts, it must be seen as a window for additional credit," he said.

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