RBI mulls to digitise SME loans end-to-end in 2023

New Delhi, Nov 3 (KNN) The Reserve Bank of India (RBI) is considering to digitise SME loans end-to-end in the next year, said RBI Governor Shaktikanta Das on Wednesday.

He said that along with this they will also look into complete digitalisation of Kisan Credit Card (KCC)-based loans depending on the learnings from the ongoing pilot project of digitised KCC lending.

Das was speaking at FICCI’s banking conference FIBAC 2022, wherein his expressed the central bank’s hopes to launch digitised KCC and SME loans sometime during the calendar year 2023.

“Our endeavour would be to launch it in a full-scale manner not only for farmer loans but also for SME loans based on the learnings and experience of the end-to-end digitised KCC loans,’ he said.

“We are working closely with our banking partners (for the pilot project) and it will be extended in due course to all banks. Currently, it is being done by two banks while two more banks are about to be onboarded shortly,” Das added.

Earlier this year in September testing of digitised KCC loans began, which focuses on the digitalisation of rural finance in India.

It started in select districts of Tamil Nadu and Madhya Pradesh with the Union Bank of India and Federal Bank.   (KNN Bureau)