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Farmers are getting tremendous benefit from RBI's Frictionless credit initiative, saving in loan amount
Frictionless credit: RBI Executive Director and Head of the Fintech Department Ajay Kumar Choudhary said that the pilot launch of a public tech platform for frictionless credit has helped lenders reduce 70 percent operational costs. At the same time, farmers are getting help in saving 6 percent of their loan amount.
RBI's Frictionless Credit Initiative has reduced customer acquisition costs for financial institutions by up to 70 percent. Besides, borrowers are also able to save up to 6 percent of their loan amount. This information was given by a senior RBI official.
The pilot project was launched in April this year in Tamil Nadu and Madhya Pradesh with all-digital KCC lending developed by RBI Innovation Hub on a public tech platform. From August 17 this year, it was extended to Maharashtra, Uttar Pradesh, Karnataka, and Gujarat (dairy producers).
RBI Executive Director and Head of Fintech Department Ajay Kumar Choudhary said the pilot launch of the public tech platform for frictionless credit has helped lenders reduce 70 percent operational costs. At the same time, farmers are getting help in saving 6 percent of their loan amount.
