The Reserve Bank has put up a stall at the venue of third meeting of G20 finance ministers and central bank governors (FMCBG) here, showcasing its recent innovation initiatives relating to pilot on ‘Frictionless Credit’ and ‘Central Bank Digital Currency’.
Set up at Mahatma Mandir Convention Centre, the ‘Innovation Pavilion’ also features an informative video explaining the various facets of these two initiatives.
As part of the ‘Frictionless Credit’, an experience centre has been set up to give a real-life feel of the transformational Digital Kisan Credit Card (KCC) and Digital Dairy journey, RBI said in a statement.
The digital KCC showcases how the digitized land record data can be used to sanction and disburse the loan in a completely digitized and paperless manner without the farmer having to visit the bank branch, it said.
The digital journey includes opening of accounts through e- KYC, accessing digitized land records of State Government, credit bureau scores and other necessary information. The document creation, loan disbursement etc. are also integrated and fully automated.
Similarly, digital dairy loan leverages on the digitized milk pouring data available with milk cooperatives and the loan sanction to disbursement process is end-to-end digitalised.
The digitalization of processes was substantially reducing the operational expenses and opportunity cost, as also decreasing the turnaround time for loan processing from more than two- three weeks to a few minutes.
The pilot of Digital KCC is presently being run in select districts of Madhya Pradesh, Tamil Nadu, Maharashtra, Karnataka, and Uttar Pradesh, while the pilot on Digital Dairy is being carried out in Gujarat.
The pilots have been operationalized in association with Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of RBI.
The exhibits also provide information about the upcoming digital Tech Platform, which is being developed to enable frictionless credit to various type of loans including MSME, Personal Loans, KCC, dairy loans etc by making use of various digital data points.
The platform envisages a ‘plug and play’ model to which all the financial sector players could connect seamlessly obviating the need of multiple bespoke bilateral integrations and is expected to bring paradigm change by ushering in completely digital credit delivery process, it said.
Further, live transactions on CBDC -Retail (e?) was being showcased, duly supported by a short video on ‘Central Bank Digital Currency- India Story’ explaining the concept, motivation, use cases of the present pilot in CBDC-Retail (e?), limited inter-operability with UPI and the proposals under consideration for future use cases at the ‘Innovation Pavilion’.
It may be noted that CBDC Retail Pilot has been scaled up from four banks across four cities to 13 banks across 26 cities and around 13 lakh CBDC-R users and 3 lakh merchants have already been on-boarded by participating banks.
RBI is working towards full scale inter-operability with UPI QR code, it said, adding, the arrangement for live transaction experience in e? at the pavilion was well appreciated by the visitors.
The third G20 FMCBG meeting started here on Monday.