Credit on UPI Can Transform Farm Lending, Says SBI Chairman C.S. Setty at GFF 2025

The next big leap in India’s financial inclusion story could come from extending credit to farmers through the Unified Payments Interface (UPI), State Bank of India (SBI) Chairman C.S. Setty said on Wednesday at the Global Fintech Fest (GFF) 2025 in Mumbai.

Calling “Credit on UPI” a revolutionary innovation, Setty said it has the potential to bring millions of small farmers and rural entrepreneurs into the formal credit system. “Credit on UPI is a revolutionary step, transforming a payment tool into a credit platform,” he said in a fireside chat with Sohini Rajola, Executive Director – Growth, National Payments Corporation of India (NPCI).

Bringing Farmers into the Credit Network

Setty said SBI is actively exploring ways to integrate UPI with the Kisan Credit Card (KCC) scheme, allowing farmers to access instant, small-ticket loans directly through their mobile phones. “We are exploring whether farmers can avail of credit, especially through KCC, given UPI’s deep penetration in rural and semi-urban areas,” he said.

He added that true financial inclusion will remain incomplete until formal credit reaches the agricultural backbone of the economy. “Inclusion in India is not complete until we deliver credit to the last mile — to farmers and small vendors,” he noted.

UPI, which has become India’s most widely used digital payment platform, has seen rapid adoption even in semi-urban and rural markets. According to Setty, embedding credit access within this framework could make borrowing as seamless as making a digital payment — with applications, approvals, and disbursals happening in real time.

Digital Tools for Rural Empowerment

Setty said predictive AI models and data-driven underwriting can help banks extend pre-approved micro-loans to farmers based on transaction history and repayment patterns. “The challenge, however, is not disbursal — it’s collections. But UPI provides a strong structure for both if managed prudently,” he said.

He called for urgent reforms in the Know Your Customer (KYC) process to make rural onboarding simpler. “As millions of new customers join the formal system, simplifying KYC is key. We’re working with regulators to make it more seamless, efficient, and digital-first,” he said.

SBI’s Rural and Digital Push

Setty highlighted SBI’s ongoing partnership with fintechs to develop low-cost, high-impact credit and payment solutions for rural markets. “We are collaborating with nearly a dozen fintechs to build intuitive, scalable digital journeys. Fintechs bring agility, and wherever solutions are proven, we co-develop or adopt rather than reinvent,” he explained.

He also underscored the bank’s efforts to expand the reach of its flagship digital platform, YONO, to deepen engagement with rural customers. “YONO is not just a mobile app — it’s a reimagined customer journey. With over 90 million users, we’re ensuring it’s accessible in 15 languages so that no farmer or small entrepreneur is left behind,” Setty said.

Reaffirming SBI’s commitment to service reliability, he added, “Reliability and uptime are non-negotiable. For farmers and small traders, trust in digital systems comes from consistent and secure banking experiences.”