RBI Launches Public Tech Credit Platform For 'Frictionless Credit' During the initial pilot phase, the platform will emphasize various financial products including Kisan Credit Card loans up to INR 1.6 lakh per borrower

The Reserve Bank of India (RBI) is launching a pilot project for 'Public Tech Platform' for frictionless credit. The platform is being developed by the Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of the central bank.

During the initial pilot phase, the platform will emphasise various financial products including Kisan Credit Card loans up to INR 1.6 lakh per borrower, Dairy Loans, unsecured MSME loans, personal loans, and home loans, all facilitated through participating banks.

According to reports, the platform aims to create a shared space for various central and state government entities, banks, credit information companies, digital identity authorities, etc., to share data for credit appraisal.

"For digital credit delivery, the data required for credit appraisal are available with 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 rule-based lending," said RBI.

RBI said with rapid progress in digitalisation, 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.

"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.," RBI added.