RBI Initiates Pilot Project For Public Tech Platform Enabling Seamless Credit Access
The Reserve Bank of India (RBI) has unveiled its plans to introduce a Pilot Project for a Public Tech Platform for Smooth Credit Processes. This initiative is being spearheaded by the Reserve Bank Innovation Hub (RBIH), a fully-owned subsidiary of RBI. The official launch of the platform's pilot phase is scheduled for 17 August 2023, and will be implemented in a gradual manner, ensuring controlled access for information providers and targeted use cases.
According to the RBI's announcement, the main objective of this platform is to enhance the efficiency of the lending process by reducing costs, expediting loan disbursements, and facilitating scalability. The platform's design incorporates a comprehensive digital framework that features an open architecture, as well as open Application Programming Interfaces (APIs) and standards. This structure allows all players within the financial sector to seamlessly connect to the platform using a 'plug and play' model.
During the initial pilot phase, the platform will prioritise the facilitation of various products, including Kisan Credit Card loans with a cap of Rs 1.6 lakh per borrower, Dairy Loans, unsecured MSME loans, Personal loans, and Home loans through participating banks. Furthermore, the platform will offer integration capabilities with services like Aadhaar e-KYC, land records sourced from State Governments (specifically, Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh, and Maharashtra), Satellite data, PAN Validation, Transliteration, Aadhaar e-signing, account aggregation through Account Aggregators (AAs), milk pouring data from select dairy co-operatives, and house/property search data, among others.
As the pilot phase progresses, the platform will expand its scope and coverage to encompass a wider array of products, information providers, and lenders. The RBI emphasised that this expansion will be based on the insights gained from the initial phase of implementation.
