New Delhi, Oct. 16 -- NITI Aayog Vice Chairman Ashok Lahiri on Wednesday called for leveraging transaction data generated through the Unified Payments Interface (UPI) to improve credit assessment and bring informal businesses, particularly micro, small and medium enterprises (MSMEs), into the formal credit system.

UPI Data To Improve Credit Assessment

Speaking at the Global Fintech Fest, Lahiri said UPI transaction data could help banks assess borrowers more effectively, price risks accurately and extend credit to small businesses traditionally excluded from formal lending.

He said India needs to find ways to integrate the informal sector into the financial system by using the growing volume of digital payment data for credit assessmen...