Prepare road map for small merchants' entry into digital fold, Finmin tells lenders

The finance ministry has asked banks to work out the roadmap for bringing small merchants and traders within the fold of digital transactions.

"Banks are now working on the standard operating procedure, the scope of services, and a performance measure matrix," said an official, adding that the Indian Banks' Association, or IBA, will also be engaged to bring private banks on board. Another bank executive confirmed that lenders have been asked to provide their input on aspects such as whether more financial services products can be introduced and how to address issues such as digital security for both vendors and their clients.

"Since DBUs are also expected to play a role in enabling customers to learn digital banking, it is important that small traders are also on board with digital financial literacy campaigns," he said, adding that special emphasis will be placed on cyber security.

At the launch of Digital Banking Units (DBUs) in October, Prime Minister Narendra Modi had said the economy of any country is as progressive as its banking system is strong and that fintech would lead to a financial revolution. "If Jan Dhan accounts had laid the foundation of financial inclusion in the country, then fintech would form the basis of financial revolution," he said, while dedicating 75 DBUs in as many districts.