RBI launches ‘Public Tech Platform’ for smooth credit delivery

The Reserve Bank of India (RBI) has revealed the initiation of a Pilot Project through the Reserve Bank Innovation Hub (RBIH), its wholly-owned subsidiary, for a Public Tech Platform designed to offer seamless credit experiences.

This Public Tech Platform aims to streamline the lending process by effortlessly transmitting necessary digital data to lenders, as per the RBI’s announcement.

Scheduled for a calibrated rollout on August 17, 2023, the Platform’s introduction will be strategically phased, encompassing both access to information providers and practical use scenarios.

The RBI shared that this initiative is expected to enhance lending efficiency by minimizing costs, expediting disbursements, and ensuring scalability.

The Platform itself will be built with an open architecture, inclusive of open Application Programming Interfaces (APIs) and standards, facilitating straightforward connections for all players in the financial sector, following a ‘plug and play’ model.

In its initial phase, the platform will primarily focus on products such as Kisan Credit Card loans (up to ₹1.6 lakh per borrower), Dairy Loans, collateral-free MSME loans, Personal loans, and Home loans offered through participating banks.

Moreover, the platform is set to integrate various services, including Aadhaar e-KYC, land records from selected State Governments (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 specific dairy co-operatives, and property search data, among others, as outlined by the Reserve Bank.

As the Pilot Project progresses, insights gained will guide the expansion of the platform’s scope, encompassing more products, information providers, and lenders, as specified in the RBI’s release.