Central Idea

The Reserve Bank of India (RBI) has unveiled a Public Tech Platform for Frictionless Credit to transform credit accessibility and lending efficiency.

About the Public Tech Platform

It is developed by the RBI’s subsidiary Reserve Bank Innovation Hub (RBIH).
It aims to streamline the credit delivery process by enabling seamless digital information flow to lenders.
It intends to simplify the credit assessment by providing an end-to-end digital ecosystem that facilitates the smooth exchange of essential digital data among stakeholders.

Features of the Platform

Open Architecture: The platform adopts an open architecture model, fostering interoperability and collaboration among various financial sector players.
Plug and Play Model: The open Application Programming Interfaces (APIs) and standards enable seamless integration and interaction among participating entities.
Efficiency and Scalability: The platform aims to enhance lending efficiency, reduce costs, expedite disbursement, and scale up lending operations.

Calibrated Rollout: The platform is set to launch as a pilot project on August 17, 2023, with gradual access to information providers and use cases.
Initial Focus: The pilot phase will focus on credit products like Kisan Credit Card loans, dairy loans, collateral-free MSME loans, personal loans, and home loans.
Integration and Services: The platform will integrate services such as Aadhaar e-KYC, state government land records, satellite data, PAN validation, Aadhaar e-signing, account aggregation, and more.