RBI To Launch Public Tech Platform In Pilot Project From Aug 17 For Frictionless Credit; Heres All You Need To Know

New Delhi: Reserve Bank of India (RBI) announced on Monday to start the pilot project for Public Tech Platform for Frictionless Credit from August 17, 2023. The platform is being developed by Reserve Bank Innovation Hub (RBIH), a wholly owned subsidiary of RBI.

It aims to increase efficiency in the lending process by cutting costs, quicker disbursement and scalability. 

What’s the Public Tech Platform?

RBI said that the Public Tech Platform would enable seamless flow of digital information to lenders for no-hindrance credit. The end-to-end digital platform will connect all financial players seamlessly in a ‘plug and play’ model to share the information.

What’s the purpose?

As of now, India hasn’t have inclusive and well-developed digital public infrastructure to bring all stakeholders together. For digital credit delivery, the data required for credit appraisal are available with different 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 rulebased lending.

So, 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 with rapid progress in digtalisation.

When will the pilot project start?

The platform will be rolled out in a pilot project in a calibrated fashion. It will start from August 17.

Initially, the project will be focused on products such as Kisan Credit Card loans up to Rs 1.6 lakh per borrower, Daily Loans, MSME loans, Personal loans, and Home loans though 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, 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.