IANS | 15 Aug, 2023
The Reserve Bank of India (RBI) will on August 17 launch a pilot
project for a public tech platform, which will enable delivery of
frictionless credit by facilitating seamless flow of required digital
information to lenders.
The formation of the platform had been announced by RBI Governor Shaktikanta Das on August 10 during the monetary policy review.
The
public tech platform for frictionless credit is being developed by the
Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of RBI.
Amid rapid digitalisation, banks and other financial institutions have begun using digital public infrastructure.
However,
the data needed for digital credit delivery is available with different
entities like Central and state governments, account aggregators,
banks, credit information companies, digital identity authorities, etc.
Also, it is in separate systems, thus creating hindrance in frictionless and timely delivery of rule-based lending.
The
public tech platform will enable delivery of frictionless credit by
facilitating seamless flow of required digital information to the
lenders.
The end-to-end digital platform will have an open
architecture, open Application Programming Interfaces (APIs) and
standards, to which all financial sector players can connect seamlessly
in a ‘plug and play’ model.
The platform is intended to be rolled
out as a pilot project in a calibrated fashion, both in terms of access
to information providers and use cases.
It shall bring about
efficiency in the lending process in terms of reduction of costs,
quicker disbursement and scalability, an official statement issued by
the RBI said.
During the pilot, the platform shall 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.
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, and account aggregation by account
aggregators (AAs), among others.
Based on the learnings, the scope
and coverage would be expanded to include more products, information
providers and lenders during the pilot, the RBI said.
