Last Updated on October 8, 2025 7:02 pm by BIZNAMA NEWS
R. Suryamurthy
State Bank of India (SBI) Chairman C.S. Setty on Wednesday said the next frontier of India’s digital finance revolution lies in extending credit access to farmers through the Unified Payments Interface (UPI), calling it a potential game-changer for rural India.
Speaking at the Global Fintech Fest (GFF) 2025 in Mumbai, Setty described “Credit on UPI” as a breakthrough that could turn India’s most successful digital payments platform into a vital channel for inclusive lending. “The power of UPI lies in its reach. Bringing credit to that ecosystem — especially for farmers — could be one of the most transformational steps in India’s financial history,” he said during a fireside chat with Sohini Rajola, Executive Director – Growth, National Payments Corporation of India (NPCI).
From Payments to Credit for India’s Farmers
Setty said that UPI’s deep penetration across rural and semi-urban regions has created the infrastructure needed to reach borrowers traditionally left out of formal finance. “We are examining whether farmers can use UPI to access Kisan Credit Cards and other short-term credit facilities. Once we enable that, credit inclusion will become truly universal,” he said.
He added that rural lending has long faced structural barriers — from cumbersome paperwork to limited branch access — and UPI could dissolve many of them by integrating identity, payment, and credit data into one seamless platform. “With predictive AI and transaction data, we can offer pre-approved microloans instantly, even to small farmers and vendors,” Setty noted.
Simplifying KYC and Boosting Access
Setty also highlighted the need to simplify Know Your Customer (KYC) norms for first-time rural borrowers. “Millions of new customers are entering the formal banking system. We’re working with regulators to make KYC simpler, more digital, and less intimidating — particularly for those in villages and small towns,” he said.
He stressed that the focus must be on responsible inclusion — ensuring that easy credit does not lead to over-borrowing. “The real challenge isn’t giving credit, it’s ensuring repayment discipline. UPI’s digital framework gives us tools to do both responsibly,” Setty added.
Fintech Collaboration for Rural Innovation
Setty said SBI is deepening its partnerships with fintech companies to develop digital tools tailored for rural India. “Fintechs bring agility and innovation. We’re working with around a dozen of them to create frictionless journeys — whether for onboarding, loan approvals, or repayments,” he said.
He also spoke about SBI’s expanding YONO platform, which he described as a bridge between India’s urban and rural digital ecosystems. “YONO is now being localised in 15 Indian languages. With over 90 million registered users, it’s helping us bring financial services to places where branches alone can’t reach,” he said.
Banking for Bharat
Setty reiterated that SBI’s broader vision is to ensure that digital banking and formal credit become accessible to every Indian household. “Our mission is not just digitisation — it’s empowerment. When a small farmer can access credit from his phone as easily as making a UPI payment, that’s when true financial inclusion will be achieved,” he said.
The SBI chief emphasised that reliability remains the foundation of digital trust. “Whether it’s a farmer checking his balance or a trader making a UPI transaction, reliability and uptime are non-negotiable. Customer trust depends on consistent, secure, and intuitive experiences,” he said.
