RBI is pushing UPI-like credit platform for farmers, MSMEs
Reserve Bank of India is pushing for the wider adoption of an open-source credit disbursal platform similar to the Unified Payments Interface for digital payments, to make it easier for farmers and owners of small businesses to access credit.
While disbursal of consumer loans through a digital interface has become common, farmers and people who run small businesses still need to queue up at their local bank branches and the land records department for days to access agriculture loans and take Kisan credit cards.
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Offering CollegeCourseWebsiteIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitMITMIT Technology Leadership and InnovationVisitIIT DelhiIITD Certificate Programme in Data Science & Machine LearningVisitThe Public Tech Platform for Financial Credit (PTPFC) is envisaged to address this issue.
Lenders and startups can plug into the PTPFC platform to cater to the growing need of formal credit. The platform is already powering agri loans, Kisan credit cards, small value MSME loans and other such products.
The Reserve Bank Innovation Hub, along with the central bank’s fintech department, is driving this programme, said a senior banker in the know.
“Around Rs 3,500 crore worth of loans in agri and MSME have been disbursed through the platform,” the banker said.
The RBI did not respond to emailed queries.
Industry estimates suggest that more than 30% of the farmers in the country take loans at rates as high as 3% per
