Banking News

Public tech platform a game changer: RBI Official


Mumbai: The central bank’s Public Tech platform for frictionless credit will be akin to the “UPI moment” for lending in India, ushering in a new era of efficiency in disbursing loans in rural areas, executive director Ajay Choudhary said.

“This is going to be revolutionary. This will be another UPI (Unified Payments Interface) moment for the credit. That is very clear. In the next one to one-and-a-half years, this will change the landscape of lending,” Choudhary said at the Global Fintech Festival 2023.

The Reserve Bank of India (RBI) launched the pilot on Kisan Credit Card (KCC) digitalisation in September 2022 in some districts of Madhya Pradesh and Tamil Nadu, with the scheme facilitating successful disbursal of agricultural loans up to ₹1.6 lakh per borrower without collateral.

At present, seven banks are part of the digital KCC pilot and the scheme has been extended to dairy farmers in Gujarat, RBI Governor Shaktikanta Das said on Wednesday.


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