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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Pilot Project for Public Tech Platform for Frictionless Credit

14-Aug-2023 | Press Release: 2023-2024/750

Reserve Bank of India (RBI) has issued a Press Release regarding the launch of a Pilot Project for a Public Tech Platform aimed at achieving frictionless credit processes.

As outlined in the Statement on Developmental and Regulatory Policies released on August 10, 2023, the RBI has introduced plans to develop a Public Tech Platform for Frictionless Credit. This innovative platform is being developed by the Reserve Bank Innovation Hub (RBIH), which is a wholly owned subsidiary of the RBI.

Key points of the Press Release are as follows:

1. Open Architecture: The platform will be built with an open architecture, open Application Programming Interfaces (APIs), and standardized protocols. This approach encourages all participants in the financial sector to seamlessly connect to the platform, following a "plug and play" model.

2. Pilot Project: The platform is initially being introduced as a pilot project. It will be rolled out in a carefully calibrated manner, focusing on specific access to information providers and use cases.

3. Initial Focus Areas: The pilot project will concentrate on select products such as Kisan Credit Card loans (up to Rs.1.6 lakh per borrower), Dairy Loans, collateral-free MSME loans, Personal loans, and home loans offered through participating banks. The platform will also facilitate linkages with various services, including Aadhaar e-KYC, land records from State Governments (Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh, and Maharashtra), Satellite data, PAN Validation, Aadhaar e-signing, data aggregation by Account Aggregators, milk pouring data from specific dairy cooperatives, and house/property search data.

Expansion Plans: Based on the insights gained from the pilot project, the platform's scope and coverage will be expanded to include more products, information providers, and lenders.

Commencement of Pilot: The pilot phase of the Public Tech Platform is set to commence on August 17, 2023.

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