UPI is expanding lending across the risk spectrum

Investing in digital public infrastructure such as the Unified Payments Interface (UPI) is reshaping credit markets by allowing banks and fintech firms to expand lending across the risk spectrum, said the Economic Survey, released on Thursday.

- Anshika Kayastha

Fintechs play a key role in reaching new-to-credit borrowers who were earlier excluded from formal finance, the survey said, citing a working paper ‘Breaking Barriers to Financial Access Cross-Platform Digital Payments and Credit Markets (2025), by Shahswat Alok.

It is effective use of accounts that determine if financial inclusion translates to economic opportunities