Join our Waitlist for Expert Advice!

RBI Launches Public Tech Credit Platform For 'Frictionless Credit' During the initial pilot phase, the platform will emphasize various financial products including Kisan Credit Card loans up to INR 1.6 lakh per borrower

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Social Media handle

The Reserve Bank of India (RBI) is launching a pilot project for 'Public Tech Platform' for frictionless credit. The platform is being developed by the Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of the central bank.

During the initial pilot phase, the platform will emphasise various financial products including Kisan Credit Card loans up to INR 1.6 lakh per borrower, Dairy Loans, unsecured MSME loans, personal loans, and home loans, all facilitated through participating banks.

According to reports, the platform aims to create a shared space for various central and state government entities, banks, credit information companies, digital identity authorities, etc., to share data for credit appraisal.

"For digital credit delivery, the data required for credit appraisal are available with entities like central and state governments, account aggregators, banks, credit information companies, digital identity authorities, etc. However, they are in separate systems, creating hindrance in frictionless and timely delivery of rule-based lending," said RBI.

RBI said with rapid progress in digitalisation, India has embraced the concept of digital public infrastructure which encourages banks, NBFCs, fintech companies and startups to create and provide innovative solutions in payments, credit, and other financial activities.

"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.," RBI added.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Leadership

Could We Have The First Native American Woman Governor? DEI Expert Weighs In On What Allyship Should Look Like If History Is Made.

We can all learn more about what it means to be a better ally for those who are the "firsts" in their space. Here are three strategies around allyship this DEI expert recommends to her diversity, equity and inclusion (DEI) consultancy clients.

Growing a Business

How to Effectively Manage Intangible Assets for Long-Term Business Success

Intangible assets, unlike physical ones, may evolve to a point where the business objective no longer has the capacity to utilize them effectively. This evolution triggers the need for transformation, potentially turning an intangible asset into a product for sale.

Money & Finance

Customers Have a Favorite Payment Method — But 30% of Businesses Don't Accept It. Are You Driving Business Away?

This article examines the surprising gap between what consumers want in payment options and what small businesses currently offer. It also provides strategies for small business owners looking to adapt to these preferences and enhance customer loyalty.

Growing a Business

How to Reclaim Your Time and Start Focusing on Your Business's Big Picture

You can always get more money, but you can never get more time.

Business News

'Additional Human Touch': Starbucks Has a Turnaround Plan That Includes Buying 200,000 Sharpies. Here's Why.

Faced with declining sales, Starbucks has a comeback plan that involves several changes to stores and menus. Here's a look at the changes coming to your store.