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Frictionless Credit Facility: RBI is bringing frictionless credit facility, farmers and unorganized sections will benefit
Shaktikanta Das said that such a digital platform is being developed for frictionless credit facilities, whose Application Programming Interface (API) will enable all the institutions of the financial sector to connect without any hindrance like plug and play model. At present, pilot projects are being run in many states to provide loans to dairy entrepreneurs through Kisan Credit Cards and in a frictionless manner.
RBI Governor Shaktikanta Das said on Thursday that a digital public tech platform is being developed for frictionless credit facilities.
This work is being done by Reserve Bank Innovation Hub, a subsidiary of RBI, with the help of which all the information will be provided digitally to the lender and no contact or documents will be required for the loan.
Das said that the frictionless credit system will increase the efficiency of loan processing and disbursement will be much faster along with a reduction in the cost of credit, which will enable loans to be given to more people.
Das said that a digital platform is being developed for frictionless credit facilities, whose application programming interface (API) will enable all the financial sector institutions to connect seamlessly like plug and play model. At present, pilot projects are being run in many states to provide loans to dairy entrepreneurs through Kisan Credit Cards and in a frictionless manner.
