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.
Source: https://government.economictimes.indiatimes.com/news/economy/rbi-to-pilot-public-tech-platform-to-aid-lenders/102762525#:~:text=%22The%20public%20tech%20platform%20would,RBI%20said%20in%20a%20statement.