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RBI launches public tech platform to boost MSMEs access to credit
September 18, 2023
The Reserve Bank of India has unveiled its platform Public Tech Platform for Frictionless Credit to enhance credit access for MSMEs, according to a report by news agency ANI. The platform will streamline and enhance credit delivery by financial institutions and contribute to greater financial inclusion, the report said citing T Rabi Shankar, Deputy Governor, Reserve Bank of India.
The program was unveiled by T. Rabi Sankar, Deputy Governor of RBI, who further highlighted its potential to revolutionize credit access for MSMEs, the report noted.
As reported by FE in August, the platform will focus on products such as Kisan Credit Card loans up to ₹1.6 lakh per borrower, along with collateral-free MSME loans, dairy loans, personal loans, and Home loans. The platform will provide satellite data, conduct PAN card validation, and Aadhar e-signing, among others.
It will be an end-to-end digital platform with an open architecture and open APIs and standards for lenders to connect seamlessly in a ‘plug and play’ model for a seamless flow of required digital information to them for frictionless credit delivery.
The platform was developed based on the learnings from pilots undertaken such as the digitalisation of Kisan Credit Card (KCC) loans which was started in September 2022. The pilot tested end-to-end digitalisation of the lending process in a paperless and hassle-free manner.
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