Solution

The Reserve Bank of India (RBI) will commence the pilot for a Public Tech Platform for Frictionless Credit. During the pilot, the platform will focus on products such as Kisan Credit Card loans up to Rs 1.6 lakh per borrower, Dairy Loans, loans to Micro, Small and Medium Enterprises (MSME) without collateral, Personal loans and Home loans through participating banks.  The platform is expected to enable linkage with services such as Aadhaar e-KYC, Aadhaar e-signing, account aggregation by Account Aggregators (AAs), land records from onboarded State Governments (Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh, and Maharashtra). The platform will enable linkage with Satellite data, Permanent Account Number (PAN) Validation, Transliteration, Aadhaar e-signing, account aggregation by Account Aggregators (AAs), milk pouring data from select dairy co-operatives, house/property search data, and so on. The Platform is being developed by Reserve Bank Innovation Hub (RBIH), a wholly owned subsidiary of the RBI.    For digital credit delivery, the data required for credit appraisal are available with different entities like Central and State governments, account aggregators, banks, credit information companies, digital identity authorities, and so on. However, they are in separate systems, creating a hindrance in frictionless.