He said that from the current loan crisis and the NPA situation among banks and non-bank financial corporations (NBFCs), the next generation of credit will emerge, which will be based on technologies such as artificial intelligence (AI). ) and data.

“Credit decisions will be made relative to trade flows, not assets, and the decision would be AI-based and made in seconds. It can detect both good and bad credit risks. And all of this will happen in real time systems. It would be good for newcomers once the small businesses have a data footprint, ”said Nilekani, founding chairman of the Single Identification Authority of India (UIDAI).

Nilekani, who is also co-founder and president of Infosys Ltd, was speaking in Bengaluru at an event where Paytm launched a point of sale (POS) or payment acceptance device, which will help small merchants , including kirana stores, to accept cash payments, Paytm wallet, debit and credit cards, and Unified Payments Interface (UPI) applications.

“… Just as digital payments have nothing to do with cash payments, the new type of credit will have nothing to do with the old type of credit. Going forward, a company’s digital payment history would be a reliable source of its performance and technology like AI could help detect fraud, ”he said.

Nilekani also said Paytm’s new device will democratize payments where everyone in every nook and corner of the country has access to digital payments.