Digital payments, technology adoption and data-led credit assessment are reshaping India’s microfinance sector, creating new opportunities to expand financial inclusion while strengthening transparency and responsible lending practices. In this interview with Tech Achieve Media, Avinash Kumar, COO, DJT Microfinance, discusses the role of UPI and digital repayment solutions in improving customer experience, the growing adoption of technology in rural India and the importance of data security, financial literacy and disciplined credit assessment. He also outlines DJT Microfinance’s priorities for expanding access to technology-enabled financial services and supporting women entrepreneurs and underserved communities through responsible lending.
TAM: How are digital payment solutions transforming customer experience and financial inclusion in India’s microfinance sector?
Avinash Kumar: Digital payments are making formal financial services more accessible, convenient and transparent for customers across rural India. UPI and other digital payment channels are helping microfinance institutions streamline loan collections, improve reconciliation, enhance transaction traceability and provide faster payment confirmations. As highlighted in Sa-Dhan’s Bharat Microfinance Report 2026, digital collection channels are also contributing to greater operational efficiency in the sector. However, expanding digital adoption requires a parallel focus on financial literacy, local-language communication and accessible customer support, particularly to ensure that women in underserved communities can confidently navigate digital financial services.
Also read: Sunil Sharma Named National Head, Risk Control, Vigilance and Audit at DJT Microfinance
At DJT Microfinance, we view digital payments as an important tool for improving customer experience and providing greater visibility into repayment transactions. Our focus is on combining the convenience of digital financial services with personalised assistance, ensuring that rural customers, particularly women, can access and use these services with confidence.
TAM: How do you see technology adoption increasing in rural areas and smaller towns?
Avinash Kumar: Technology adoption in rural India and smaller towns is creating new opportunities for financial inclusion and micro-entrepreneurship. India’s telephone connections increased from 93.3 crore in March 2014 to over 133 crore in March 2026, while internet subscribers grew from 25.15 crore to 109.27 crore during the same period. SIDBI’s June 2026 Microfinance Pulse reports 7.15 crore active microfinance loan accounts nationwide, highlighting the sector’s extensive reach.
At DJT Microfinance, our network of 130 branches across seven states positions us to support this transition through a combination of digital solutions, field-team guidance and customer education. As familiarity with technology grows, the focus will be on making financial services simpler, more accessible and easier to understand, while promoting responsible lending and enabling customers to manage household finances and small businesses more efficiently.
TAM: How is DJT Microfinance leveraging UPI-based payments and autopay facilities to make loan repayments more convenient, secure and transparent for customers?
Avinash Kumar: UPI has emerged as a key pillar of India’s Digital Public Infrastructure (DPI), advancing financial inclusion by making digital transactions more accessible, convenient and transparent. As India progresses towards its vision of Viksit Bharat 2047, digital payment solutions are creating opportunities for wider participation in the formal financial system.
At DJT Microfinance, we are leveraging technology-enabled processes to simplify loan repayments through UPI-based payments and authorised autopay facilities. Clear repayment schedules, customer consent, timely transaction confirmations and accessible support for failed or disputed payments are integral to this approach. Our objective is to combine digital convenience with customer choice, transparency and the personalised assistance that remains essential to rural lending.
TAM: What measures does DJT Microfinance take to ensure customer safety, data security and transparency across the lending journey?
Avinash Kumar: Customer safety, data protection and transparency are central to responsible microfinance. Clear communication of loan terms, repayment obligations and applicable charges helps customers make informed borrowing decisions. As digital adoption grows, secure data access, appropriate controls and safe transaction practices become increasingly important. At DJT Microfinance, our field teams reinforce financial awareness and encourage customers to safeguard confidential credentials such as PINs and OTPs. Accessible grievance-resolution channels and timely communication further strengthen customer trust. Our approach combines responsible lending, data protection and responsive customer support throughout the lending journey.
TAM: What are some of the technology-driven practices that support responsible borrowing among microfinance customers?
Avinash Kumar: Technology supports responsible borrowing by enabling more informed credit decisions and better repayment monitoring. At DJT Microfinance, we use credit bureau information, data-led credit assessment and disciplined underwriting to evaluate existing obligations and repayment capacity. Internal monitoring systems and portfolio analysis further support risk assessment and credit decisions, while our field teams maintain regular engagement with customers. The latest SIDBI Microfinance Pulse reports that industry-wide 30-plus-day delinquency declined from 6.08% in June 2025 to 1.89% in June 2026. This underlines the importance of disciplined lending and portfolio monitoring. Our priority is to ensure that credit remains aligned with customers’ financial circumstances and income-generating needs.
TAM: What are DJT Microfinance’s key priorities for expanding access to responsible, transparent and technology-enabled financial services?
Avinash Kumar: Microfinance plays an important role in supporting livelihoods, with Sa-Dhan’s Bharat Microfinance Report 2026 indicating that approximately 88% of loans covered in its industry data were used for income-generating purposes. Strengthening digital adoption, improving customer awareness and monitoring repayment capacity are key to expanding access to responsible, transparent and customer-centric financial services.
At DJT Microfinance, we aim to advance these priorities through technology-enabled services and stronger local outreach. With 130 branches across seven states, we are focused on improving customer experience through greater digital adoption, clearer communication and rigorous credit assessment. Our larger ambition is to help women access appropriate financial services, strengthen their enterprises, build sustainable livelihoods and move towards greater financial independence.
