Strengthening India’s Financial Security: SBI Chairman Proposes National Financial Grid

SBI Chairman Challa Srinivasulu Shetty proposed the creation of a National Financial Grid (NFG) to prevent financial frauds and strengthen risk management in India. Speaking at the CII Financial Summit in Mumbai, he emphasized the need to integrate key segments of the financial services sector into a single unified grid.

He stated that credit rating bureaus, fraud registries, e-KYC systems, UPI, account aggregators, and the newly introduced Unified Lending Interface (ULI) should all be connected to this financial grid. A non-profit entity, the Indian Digital Payment Intelligence Corporation, has already been formed to facilitate real-time data exchange aimed at protecting consumers.

Digital Twin for Small Businesses

Shetty also recommended the introduction of a “Digital Twin” model to make it easier for small businesses to access loans. This digital twin would store complete information related to a business, enabling:

Clear understanding of the firm’s financial status

Faster access to financial services

Transition from relationship-based lending to data-driven credit decisions for MSMEs

He highlighted that despite several initiatives, financial services are still not fully accessible to all. As a result, many small businesses continue to borrow at high interest rates from unorganized lenders. A digital twin could solve this problem by enabling structured, data-backed lending for MSMEs.