What is a Public Tech Platform for frictionless credit? The Public Tech Platform for frictionless credit is an end-to-end digital platform that has been developed by the Reserve Bank Innovation Hub, a wholly-owned subsidiary of the central bank. The platform will also have an open architecture, open Application Programming Interfaces (APIs), and standards, to which all financial sector players can connect in a ‘plug and play’ model. «This initiative simplifies the integration of vital financial data through open APIs, boosting operational efficiency.
Centralizing potential borrowers' information on a unified platform streamlines processes. With active participation from banks, NBFCs, Fintech firms, and start-ups, this collaborative strategy aligns with our dedication to seamless credit and payment solutions. The 'plug and play' model encourages innovation, driving the lending sector toward greater accessibility, cost reduction, and efficiency,» said Souparno Bagchi, COO, Balancehero India, a fintech company.How will the Public Tech Platform help in processing and disbursing loans? Lenders often need multiple sets of information before approving a credit or loan.
At present, data required to sanction a loan or credit are available from various entities such as Central and State governments, account aggregators, banks, and credit information bureaus. This has created hindrances in the frictionless and timely delivery of rule-based lending. It takes a number of days, often a week or even months, to facilitate loans.
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