Connected Commerce: Creating a Roadmap for a Digitally Inclusive Bharat Report 2021

      HEADLINES:

NITI Aayog and Mastercard Release Report on ‘Connected Commerce: Creating a Roadmap for a Digitally Inclusive Bharat’

      WHY IN NEWS:

Hot from PIB !

SYLLABUS COVERED: GS 3: Report

      ISSUE: 

CONNECTED COMMERCE: CREATING A ROADMAP FOR A DIGITALLY INCLUSIVE BHARAT REPORT 2021

OVERVIEW

Connected Commerce Report 2021

Sources : Connected Commerce: Creating a Roadmap for a Digitally Inclusive Bharat Report 2021
  • The report identifies challenges in accelerating digital financial inclusion in India and provides recommendations for making digital services accessible to its 1.3 billion citizens.
  • Based on five roundtable discussions held in October and November 2020, the report highlights key issues and opportunities, with inferences and recommendations on policy and capacity building across agriculture, small business (MSMEs), urban mobility and cyber security.
  • Experts from the government, banking sector, the financial regulator, fintech enterprises, and various ecosystem innovators participated in the discussions led by NITI Aayog and supported by Mastercard.
  • NITI Aayog was a knowledge partner in this endeavour.
  • The series of workshop sand the outcome report were curated by business advisory firm FTI Consulting.

PUBLISHED BY

REPORT HIGHLIGHTS

Accelerating the Next Phase of Digital Financial Inclusion

  • To strengthen acquisition infrastructure needed for double-sided growth of digital commerce (whether merchants or consumers)
  • NBFCs can be enabled to participate more freely in the payment ecosystem through specific measures, such as: Issuance of credit cards.
  • Facilitating the adoption of aggregator-based models around challenges such as providing credit, lending, etc., in moving India to an open banking/finance ecosystem.

EXAMPLE
Permitting a regulatory sandbox model on aggregator platforms in the credit and lending space tested in a pilot mode. For e.g., RBI’s regulatory sandbox.

Enabling Global Opportunities for MSMEs

  • Streamlining and digitizing registration and compliance processes, tax filings, software wizards, central inspection system and single window clearance would nudge this ecosystem toward more formalization.
  • For supply-chain financing to grow, more sources of credit need to be enabled for MSMEs.

Connected Commerce: Creating a Roadmap

Sources : Connected Commerce: Creating a Roadmap for a Digitally Inclusive Bharat Report 2021

Suggested measures:

  1. Equip better data-driven models around transaction tracking and supporting micro-merchants in credit access
  2. Enabling conditions for fast-tracking a loan service provider’s framework
  3. Allow ease of adopting AI, data analytics and blockchain to provide quicker financing to suppliers

Inspiring Trust and Security in Digital Commerce

  • A whitelisting approach can be developed on verified contact origins—phone numbers or top-level domains (TLDs) of banks—to avoid risks of phishing (where sensitive personal data is obtained via disguised means)
  • The use of sophisticated automated models (AI, ML) to reduce friction should be encouraged in real-time models that track device signals and patterns.

Preparing India’s Agri Enterprises for Connected Commerce

  • Digitization of land records in a time bound manner, aggressive efforts to improve institutional credit delivery through technology driven solutions to reduce the extent of financial exclusion of agricultural households.

Connected Commerce

Sources : Connected Commerce: Creating a Roadmap for a Digitally Inclusive Bharat Report 2021
  • Digital infrastructure should be built to help commercial banks acquire new customers at reduced cost and provide solutions spanning all stages of the agri value chain.

KEY POINTS

  • This report looks at some key sectors and areas that need digital disruptions to bring financial services to everyone.

Key issues addressed during the knowledge series were:

  1. Acceleration of digital financial inclusion for underserved sections of Indian society.
  2. Enabling SMEs to ‘get paid, get capital and get digital’ and access customers, and ensure their continued resilience.
  3. Policy and technological interventions to foster trust and increase cyber resilience.
  4. Unlocking the promise of digitization in India’s agriculture sector.
  5. The essential elements of a digital roadmap to make transit accessible for all citizens.

KEY RECOMMENDATIONS

Key recommendations in the report include:

  1. Strengthening the payment infrastructure to promote a level playing field for NBFCs and banks.
  2. Digitizing registration and compliance processes and diversifying credit sources to enable growth opportunities for MSMEs.
  3. Building information sharing systems,including a ‘fraud repository’, and ensuring that online digital commerce platforms carry warnings to alert consumers to the risk of frauds.
  4. Enabling agricultural NBFCs to access low-cost capital and deploy a ‘phygital’ (physical + digital) model for achieving better long-term digital outcomes. Digitizing land records will also provide a major boost to the sector.
  5. To make city transit seamlessly accessible to all with minimal crowding and queues, leveraging existing smartphones and contactless cards, and aim for an inclusive, interoperable, and fully open system such as that of the London ‘Tube’.
Connected Commerce
Sources : Connected Commerce: Creating a Roadmap for a Digitally Inclusive Bharat Report 2021

      IASbhai WINDUP: 

  • Digital technology will be the backbone of the economy, going forward. Both products and services – be it in retail, health, education, or financial services – will increasingly have a digital as well a physical aspect.
  • We must build digital systems for underserved communities so they can access services, and better control their future.

SUGGESTED READING :  REPORT

     SOURCES:   PIB   | Connected Commerce: Creating a Roadmap for a Digitally Inclusive Bharat Report 2021 | UPSC

0 Shares:
You May Also Like