Reserve bank of India is conducting a pilot project for end-to-end digitalization of Kisan Credit Cards (KCC) in association with its innovation hub by tapping into data sources such as digitized state government land records, UIDAI, credit information companies, agritech companies, etc.

The process entails integration of banks’ various internal systems to ensure that there is end to end loan processing at the level of banks. 

However, there is also need to tweak banks’ loan originating system to ensure seamless integration of different processes at any point of time, Choudhary said.

The KCC pilot is being carried out in two states and select districts of Tamil Nadu for new KCC loans with help of Union Bank of India and Federal Bank.  The central bank plans to expand this to other banks and states as well.

RBI is also working on an integrated public tech platform for finance, which can provide a standard set of tools and protocols that can represent the various components of a typical lending value chain and allow the ecosystem players to plug in lending into their current operations with banks and vice versa.

According to Choudhary, Executive Director of RBI this platform will create a common language for all the entities to communicate and replace costly complex bilateral tech integration with single standard protocol. 

“We may thus move to frictionless credit in all segment of loans wherever rule-based lending is possible by developing a public tech platform,” he said.