NITI Aayog’s Chief Executive Officer Amitabh Kant pitched for inflating the limits on loans sanctioned via one time password-based electronic know your customer (KYC) verification.
He said that the use of biometric Aadhaar-authentication for small ticket loans will inflate the existing high operating expenses of digital lenders.
“Currently, lending through OTP-based e-KYC is capped at Rs 60,000 whereas the loan size through online digital mode, as per market data points, is approximately around Rs 3.5 lakh,” said Kant.
He said that there is an urgent requirement to fix multiple levels of digital verifications for establishing the identity of a person. He also spoke about permitting credit card account opening via OTP-based e-KYC and OTP-based account opening.
“It should enable customers to apply for the card with more ease, and find products that best suit their financial needs. This will provide both retail consumer and SME customer more easy access to credit,” he said.