Kotak Bank’s Stumbles Show Pitfalls of India’s Tech Ambition
- Domestic lenders face constant glitches in their IT systems
- Regulator has been using strong language on non-compliance
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Prime Minister Narendra Modi wants to export India’s digital payments system to the world. That plan now risks stumbling as clunky technology used by Indian lenders fails to keep up with his ambitions.
In recent years, the fastest-growing major economy has invested in a vast ecosystem of technologies to increase financial inclusion and pull hundreds of millions of Indians into the digital marketplace. Today, the nation’s homegrown payments system, United Payments Interface, or UPI, is used to pay for practically everything, from expensive jewelry to a 10-rupee cup of piping hot tea.