RBI to launch pilot project for Public Tech Platform for frictionless credit

The central bank in a monetary policy announced the development of this tech platform.

The Reserve Bank of India (RBI) on August 14 announced the launch of the Pilot Project for Public Tech Platform for Frictionless Credit, which will commence on August 17.

The Public Tech Platform would enable the delivery of frictionless credit by facilitating a seamless flow of required digital information to lenders, RBI said in a release. The central bank in a monetary policy announced the development of this tech platform.

“The platform is intended to be rolled out as a pilot project in a calibrated fashion, both in terms of access to information providers and use cases. It will bring about efficiency in the lending process in terms of reduction of costs, quicker disbursement, and scalability,” RBI said in a release.

The platform during the pilot phase will focus on Kisan Credit Card loans up to Rs 1.6 lakh per borrower, dairy loans, MSME loans (without collateral), personal loans and home loans through participating banks.

Further, the platform will 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 said in a release.