{"id":257092,"date":"2023-08-23T21:06:51","date_gmt":"2023-08-23T15:36:51","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=257092"},"modified":"2023-08-29T12:06:59","modified_gmt":"2023-08-29T06:36:59","slug":"easing-credit-flow-on-the-reserve-bank-of-indias-public-tech-platform-for-frictionless-credit","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/easing-credit-flow-on-the-reserve-bank-of-indias-public-tech-platform-for-frictionless-credit\/","title":{"rendered":"Easing credit flow: On the Reserve Bank of India\u2019s Public Tech Platform for Frictionless Credit"},"content":{"rendered":"\n

Source<\/strong>: The post is based on articles\u00a0\u201c<\/strong>Easing credit flow: On the Reserve Bank of India\u2019s Public Tech Platform for Frictionless Credit<\/strong>\u201d published in The Hindu <\/strong>on\u00a023rd<\/sup> August 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS 3 \u2013 Indian Economy \u2013 Mobilization of Resources, Growth & Development<\/strong><\/p>\n

Relevance: <\/strong>About <\/strong>Public Tech Platform for Frictionless Credit<\/p>\n

News: <\/strong>Recently, the RBI has announced to establish a \u2018Public Tech Platform for Frictionless Credit\u2019.<\/p>\n

What is \u201cPublic Tech Platform for Frictionless Credit\u201d?<\/strong><\/h2>\n

It aims to make borrowing easier for small and marginal borrowers. It will function as a digital hub for credit information, streamlining the loan approval process.<\/p>\n

The platform will include an open architecture, open Application Programming Interfaces (APIs), and open standards that enable the sharing of digital data with lenders by a variety of organisations, including governmental agencies, credit information providers, and digital identification authorities.<\/p>\n

The platform would be introduced in a pilot project on products like <\/strong>Kisan Credit Card loans, loans for dairy farmers, credit without collateral for MSMEs, and personal and home loans through participating banks.<\/p>\n

Lenders have the ability to get borrower information from places like<\/strong> Aadhaar e-KYC, digital land records, and even data about milk supply from specific dairy cooperatives.<\/p>\n

Must Read: <\/strong>What is RBI\u2019s new pilot for frictionless credit?<\/strong><\/a><\/p>\n

Why was the platform needed?<\/strong><\/h2>\n

A centralized public platform is crucial because<\/strong> it’s hard for small farmers in rural areas to get formal loans. Despite over seven decades of independence, the issue of enhancing inclusive rural credit remains a significant challenge.<\/p>\n

Due to the unavailability of the formal credit, many rural borrowers resort to informal sources like moneylenders, often facing high interest rates.<\/p>\n

Hence, the proposed digital platform could address this challenge by<\/strong> utilizing digital advancements to ensure timely and cost-effective availability of small loans to those who need financing the most.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on articles\u00a0\u201cEasing credit flow: On the Reserve Bank of India\u2019s Public Tech Platform for Frictionless Credit\u201d published in The Hindu on\u00a023rd August 2023. Syllabus: GS 3 \u2013 Indian Economy \u2013 Mobilization of Resources, Growth & Development Relevance: About Public Tech Platform for Frictionless Credit News: Recently, the RBI has announced… Continue reading Easing credit flow: On the Reserve Bank of India\u2019s Public Tech Platform for Frictionless Credit<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184],"class_list":["post-257092","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/257092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=257092"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/257092\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=257092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=257092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=257092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}