IIT Madras Research Park launches report on fintech India

A report by IIT Madras Research Park has shown that Indian society is heterogeneous in fintech and still reels from fundamental financial inequities.

IIT Madras Research Park (IITMRP) has conducted a study on fintech India and found that despite all innovation in the financial service sector, reinvention of the payment system through UPI platform and other fintech in recent years, the country remains heterogeneous and still reels from fundamental financial inequities.

In the report, 'Financial Inclusion Challenges', IIT Madras has included the challenges faced by senior citizens and low-income groups in accessing financial services and the report has also recommended the solutions, as reported by TOI.

Industry's Veterans launched the Financial Inclusion Challenges report

The report was launched by Gopal Srinivasan, Chairman and Managing Director, TVS Capital Funds, S Mahalingam, Ex-Chief Financial Officer, Tata Consultancy Services, V Kamakoti, Director, ITT Madras and Ashok Jhunjhunwala, President - IITMRP.

Key Findings and Recommendations

As per the report, the Cash in Cash Out (CICO) needs to improve in rural areas, currently, an average rural customer lives nearly 4-5 km from the nearest CICO point. The report recommends, "Individuals like Kirana store owners, tradesmen etc. to function as Business Correspondents to reach the end customer, particularly in the remote parts of the country."

Other recommendations include simplification of KYC process and high quantum of banking charges for purely digital transactions like exceeding free number of transaction limit, SMS updates, insufficient balance need to be re-evaluated.

"The growing proliferation of BSNLs 4G network in the rural areas and the country's potential for growth of smartphone usage offers great optimism for better financial inclusion in India in the years to come," said Gopal Srinivasan.

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