Reserve Bank of India (RBI) is set to launch its digital lending pilot project for public tech platform for ‘Frictionless Credit‘ on 17th August 2023. The RBI, in a notification on 14th August 2023, said the platform is being develop by the Reserve Bank Innovation Hub (RBIH), a wholly-own subsidiary of the central bank.
RBI said that the Public Tech Platform is design to facilitate the smooth provision of credit by ensuring the effortless transmission of essential digital data to lenders.
This comprehensive digital platform will operate with an open structure, inclusive Application Programming Interfaces (APIs), and establish standards, enabling all participants in the financial sector to effortlessly integrate through a ‘plug and play‘ approach.
The RBI said it will foster efficiency in the lending process in terms of reduction of costs, quicker disbursement, and scalability.
Central bank said during the pilot project phase, the platform will focus on products such as Kisan Credit Card loans up to Rs 1.6 lakh per borrower, dairy loans, MSME loans (without collateral), personal loans and home loans through participating banks.
RBI said :
"The platform shall enable linkage with services such as Aadhaar e-KYC, land records from onboarded state governments (Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh, and Maharashtra), Satellite data, PAN Validation, Transliteration, Aadhaar e-signing, account aggregation by account aggregators (AAs), milk pouring data from select dairy co-operatives, house/property search data etc,".
"Based on the learnings, the scope and coverage would be expanded to include more products, information providers and lenders during the pilot,".
Reserve Bank of India to Launch 'Public Tech Platform' Pilot on August 17 to Provide Information to Lenders
— 2YoDoINDIA News Network (@2yodoindia) August 15, 2023
for more news visit https://t.co/98KV4yIruC#2YoDoINDIA #RBI #AadhaarCard #ReserveBankOfIndia pic.twitter.com/pyai1aeGF9
