Indian finance sector is as casual as “Whatsapp” now, hints Nandan Nilekani

Former UIDAI Chief Nandan Nilekani said due to emergence of payment banks and technology-related revolutions in finance sector, Indian finance sector was witnessing a "Whatsapp" like movement.

He said initiatives like Jandhan and Aadhar, Immediate Payment Service (IMPS), Unified Payments Interface (UPI), licences to payments banks and digitisation of Indian economy have contributed to "Whatsapp movement" to Indian economy. Taking smartphone to half a billion people was also a revolutionary movement in this regard.

"In 2009 there was a Whatsapp movement in telecom. My analysis is, in 2015 there is a Whatsapp movement for finance in India. Change is coming on many fronts...new licences, smart phone Aadhar identification, e-sign, payment banks etc. Some of it is regulated, some of it is technology, some of it is design, and some of it is market," Nilekani said, while addressing a gathering on "Disruption in Financial Services" at TiE LeapFrog 2015 in Bengaluru.

The IT czar added payment banks are a great piece of innovation from RBI.

“Now we have eleven, no one expected eleven..... This will create another huge revolution," Nilekani said.

The RBI has granted 'in-principle' approval to 11 entities, including Reliance Industries, Aditya Birla Nuvo, Vodafone and Airtel, to set up payments banks.

“Steps such as electronic clearance of cheque, IMPS, mobile wallets, Direct Cash Transfer (DCT) and payments banks are helping in realising this,” said Nilekani.

While talking about Aadhar, he termed it as a "game changer", adding it had already crossed 900 million people and would touch one billion mark by March 2016.

(Image: Indiatimes)