INDIA: The Reserve Bank of India (RBI) is all set to unveil its pioneering digital lending pilot project for a public tech platform focused on delivering “frictionless credit.”
The much-anticipated launch is scheduled for Thursday and is poised to reshape how credit is extended and accessed within the financial sector.
According to a notification dated August 14, the initiative is being spearheaded by the Reserve Bank Innovation Hub (RBIH), a fully owned subsidiary of the central bank.
The primary goal of the Public Tech Platform is to streamline the credit provision process by facilitating the seamless transmission of critical digital data to lenders.
By establishing an open structure, inclusive Application Programming Interfaces (APIs), and standardized protocols, the platform will allow all stakeholders in the financial sector to seamlessly integrate through a ‘plug and play’ approach.
The RBI has outlined several advantages that this platform is set to bring to the lending process. These include a significant reduction in operational costs, accelerated disbursement timelines, and enhanced scalability.
During its initial phase, the platform will focus on a range of products, including Kisan Credit Card loans, dairy loans, collateral-free MSME loans, personal loans, and home loans, all of which will be offered through participating banks.
Notably, the platform’s capabilities extend beyond the mere provision of credit. It will be capable of linking services such as Aadhaar e-KYC, land records from select state governments, satellite data, PAN validation, and more.
By consolidating diverse pieces of digital information from various sources, the platform aims to provide a comprehensive and unified perspective for efficient underwriting, expanding credit access to previously underserved segments of the population.
Industry experts and stakeholders have expressed enthusiasm for the RBI’s initiative. Anil Pinapala, CEO and Founder of FlexPay by Vivifi, hailed the move as a positive step forward for deepening credit penetration. He emphasized the potential for the platform’s expansion and its significance for non-banking financial companies (NBFCs) and fintech firms.
Karthikeyan K., Co-founder and CTO of KreditBee, underscored the platform’s potential to lower costs and enable faster and more scalable lending. Souparno Bagchi, COO of Balancehero India, commended the platform for its potential to enhance operational efficiency and simplify data integration.
Also Read: Russia’s Luna-25 Enters Lunar Orbit, Roscosmos Celebrates Successful Launch After 47-Year Hiatus
