The Reserve Bank will launch a pilot project on a “common technology platform” designed to facilitate credit through the seamless flow of required digital information to lenders.
During the pilot period, the platform will focus on products such as Kisan credit card loans of up to Rs 1.6 lakh per borrower, dairy loans, MSME loans (unsecured), personal loans and home loans through participating banks, the central bank said. . a statement.
The platform will enable integration with Aadhaar e-KYC, land records from state governments (Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh and Maharashtra), satellite data, PAN verification, Aadhaar Electronic signatures and house/property search data, etc.
“Based on lessons learned, the scope and coverage during the pilot period will be expanded to include more products, information providers and lenders,” the RBI said, adding that the pilot of the platform will start on August 17, 2023.
RBI said that with the rapid progress of digitization, India has embraced the concept of digital public infrastructure to encourage banks, non-bank financial companies, fintech companies and start-ups to create and deliver innovations in payments, credit and other financial activities solution.
For digital credit delivery, the data required for credit assessment is available from different entities such as central and state governments, account aggregators, banks, credit information companies and digital identity agencies.
However, they are located in different systems, which creates obstacles to the timely provision of rules-based loans.
“Common technology platforms will enable the delivery of frictionless credit by facilitating the seamless flow of required digital information to lenders.
“The end-to-end digital platform will have an open architecture, open application programming interfaces (APIs) and standards where all financial sector players can connect seamlessly through a ‘plug and play’ model,” the RBI said.
The platform is intended to be rolled out as a pilot project in a calibrated manner, both in terms of access to information providers and use cases.
It will increase the efficiency of the lending process in terms of cost reduction, faster disbursements and scalability.
The platform was developed by the Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of the central bank.
RBI Governor Shaktikanta Das announced this when he announced the bimonthly monetary policy on August 10.
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