RBI Launch of a Pilot Project - New Public Tech Platform for Easy Credit Access

Introduction:

The Reserve Bank of India (RBI) recently made an announcement regarding the launch of a Pilot Project for a Public Tech Platform that aims to provide easy access to credit. This initiative is being carried out by the Reserve Bank Innovation Hub (RBIH), which is a totally-owned and subsidiary of the RBI.

Why RBI Launch a New Public Tech Platform for Easy Credit Access?

The Reserve Bank's introduction of the Public Tech Platform is a game-changer, as it will streamline the process for lenders to acquire the digital information they need to provide credit. This will make it simpler and more convenient for people to access the credit they need.

Which Date RBI Launch this new Platform?

On August 17, 2023, the Platform will be introduced as a pilot project in a controlled manner, ensuring limited access to information providers and specific use cases.

Objective Of this new pilot project of RBI:

The RBI release stated that the Platform is planned to be introduced gradually as a pilot project, with controlled access to information providers and specific use cases. Its objective is to enhance the efficiency of RBI lending procedures by reducing costs, accelerating disbursement, and improving scalability.

Main Moto of this new pilot project :

According to a statement from the RBI, the digital platform will feature an open architecture, open APIs, and standards that will allow all financial sector players to connect easily in a "plug and play" model.

Benefits Of The New Pilot Project:

The Apex Bank has announced that, in the pilot phase, their platform will prioritize offering Kisan Credit Card loans of up to ₹1.6 lacks per borrower, Dairy Loans, MSME loans without collateral, Personal loans, and Home loans through participating banks.

The platform is designed to facilitate easy linkage with various services, such as Aadhaar e-KYC, land records from onboarded State Governments like Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh, and Maharashtra, satellite data, PAN validation, transliteration, Aadhaar e-signing, account aggregation by Account Aggregators (AAs), milk pouring data from select dairy co-operatives, and house/property search data, among others. The Reserve Bank has emphasized that the platform will ensure a safe and secure environment for users to access these services. 

In conclusion: 

During the pilot phase, the platform's scope and coverage will be expanded to include more products, information providers, and lenders based on the learnings gathered. This will help to provide a more comprehensive and seamless experience for users. The RBI release has highlighted that the platform's primary focus is to provide a helpful, fair, and safe environment for users to access various services and information.