RBI Credit UPI: The Reserve Bank is considering a plan to develop a credit platform like UPI for loans to farmers and MSMEs…
The problems faced by farmers and small businessmen in getting loans are going to go away. The Reserve Bank has prepared a new scheme for this. RBI is thinking of bringing a UPI-like platform for loans to farmers and MSMEs.
Farmers and MSMEs face problems
This proposed credit disbursal platform will work in the same way as UPI works for digital payments. This will simplify the loan process for farmers and MSAEs. RBI believes that consumer loans through digital interface are now common, but farmers and small businessmen still have to visit banks to get loans.
It will be possible to get a loan in a jiffy
According to RBI, the proposed credit platform will make the loan process easier for farmers and MSMEs. At present, farmers have to make rounds of land record keeping departments along with banks to get agricultural loan or Kisan Credit Card. All these problems will be solved with the proposed platform and it will be possible to get loan in a jiffy.
Work can be done with this platform
This work can be possible through Public Tech Platform for Financial Credit i.e. PTPFC. This platform is currently working on products like Agri Loan, Kisan Credit Card, Small MSME Loan. Lending banks, financial institutions and startups can be linked with this platform. Agri and MSME loans worth about Rs 3,500 crore have been distributed so far through this platform.
Payment of public transport through PPI
Apart from this, the Reserve Bank has also made a change regarding PPI i.e. prepaid payment instruments. According to the Central Bank, now payment for public transport system can be done through PPIs issued by banks and non-banking institutions.
The Reserve Bank said in a notification that keeping in mind the convenience of people using public transport, it has been decided to allow banks and non-banking institutions to introduce PPI for payment in various public transport systems.
