Platform for Frictionless Credit in the Public Sector

The Reserve Bank of India (RBI) has launched a Public Tech Platform for Frictionless loan, which aims to improve loan accessibility and lending efficiency.

The Public Technology Platform

  • It is created by the Reserve Bank Innovation Hub (RBIH), a subsidiary of the RBI.
  • It attempts to simplify the credit distribution process by allowing for the continuous flow of digital information to lenders.
  • It intends to simplify credit evaluation by offering an end-to-end digital ecosystem that enables the smooth transmission of critical digital data across stakeholders.

Platform Specifications

  • Open Architecture: The platform is built on an open architecture concept, which promotes interoperability and collaboration among financial industry participants.
  • Open Application Programming Interfaces (APIs) and standards enable easy integration and interaction among participating entities.
  • Efficiency and Scalability: The platform intends to improve lending efficiency, lower costs, speed up disbursement, and expand lending operations.

Scope and Launch

  • Calibrated Rollout: On August 17, 2023, the platform will be launched as a pilot project, with incremental access to information providers and use cases.
  • The initial focus will be on credit products such as Kisan Credit Card loans, dairy loans, collateral-free MSME loans, personal loans, and home loans.
  • Integration and Services: Aadhaar e-KYC, state government land records, satellite data, PAN validation, Aadhaar e-signing, account aggregation, and other services will be integrated into the platform.
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