Nithin Kamath, co-founder of Zerodha, has sounded a note of caution about India’s rapidly expanding digital infrastructure, warning that while Aadhaar-based systems have boosted financial inclusion, technical limitations continue to hurt the poor and rural people the most.
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However, Kamath pointed out serious gaps in infrastructure and implementation. “People in remote areas of India continue to struggle with mobile connectivity, leading to delays in verification and disbursement of benefits,” he noted, citing issues with OTP verification and unreliable biometric devices as major hurdles.
“These technological systems tend to affect the poor and vulnerable the most,” Kamath stressed. Despite the efficiency and benefits of digital transformation in reducing fraud, he stressed that “no technology is perfect” and warned of unintended negative consequences when systems fail.
He also highlighted regulatory safeguards, noting that the Securities and Exchange Board of India (SEBI) requires brokers to provide multiple access modes beyond just mobile apps. This underscores the importance of designing systems that can “decompose elegantly” without excluding users, he said.
Kamath called for a “first principle” approach to public technology, one that plans for failure and maintains continuity of service for economically vulnerable groups. “Even minor disruptions to daily life can have unintended negative side effects, especially when multiple national efforts are being made to achieve financial inclusion and economic advancement,” he wrote.
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