Nov 30, 2016, 07.57 PM | Source: PTI
Private sector RBL Bank today said it has launched 'Aadhaar Payment Bridge System' (APBS) for small ticket micro-finance loan disbursements.
The bank said it is the first bank to launch the APBS on its platform and the intent is to meet the government's target on digital banking.
"This was achieved by doing the first successful cashless disbursement to various beneficiaries in the rural segment across the country," the bank said in a release.
The bank said it is a drive towards cashless loan disbursements, which otherwise is dominated by physical cash.
The APBS system can now enable MFIs to disburse loan amounts directly in Aadhaar-enabled bank accounts through RBL Bank.
It has been developed by NPCI mainly to process government subsidies or direct benefit transfer (DBT) to various government scheme beneficiaries.
"This unique idea of using an existing government platform for disbursing micro loans is a very big step in the direction of moving towards a cashless society in the rural segment," said Rajeev Ahuja, Head - Strategy, RBL Bank.
The APBS also assumes significance at a time when cash availability in the market is actually crippled due to government's recent decision to abolish Rs 500/1000 banknotes from circulation to check black money and widen the tax base.
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