Anand Mahindra, the Chairman of the Mahindra Group and a prominent Indian entrepreneur, has expressed his admiration for the Reserve Bank of India (RBI) and its latest innovation, the Public Tech Platform for Frictionless Credit (PTPFC). In a recent tweet, Mahindra commended the RBI’s efforts to streamline and enhance the loan application process.
The PTPFC is a pilot project developed by the Reserve Bank Innovation Hub, a wholly-owned subsidiary of the RBI. Its primary objective is to create a seamless connection between borrowers and lenders, particularly targeting individuals seeking small loans. This platform is designed to facilitate the hassle-free disbursement of non-collateral-based loans for various purposes, including Micro, Small, and Medium Enterprises (MSMEs), Kisan Credit Card loans up to ₹1.6 lakh, dairy loans, personal loans, and home loans.
Anand Mahindra shared his perspective on the innovation after attending an RBI board meeting in Indore, where he witnessed a demonstration of the PTPFC. He described the platform as a potential game-changer in the credit delivery mechanism for rural customers.
In his tweet, Mahindra stated, “Sometimes, you feel you’ve been privileged to get a front-row seat to a Social & Technological disruption. At the RBI board meeting in Indore last Saturday, we were given a demonstration of the Reserve Bank’s Public Tech Platform for Frictionless Credit (PTPFC) pilot project. This could revolutionize the credit delivery mechanism to rural customers by integrating a plethora of KYC processes & documents and reducing the time taken to grant a loan from days to just a few minutes.”
One of the significant advantages of the PTPFC is its open platform design, accessible to all banks interested in using it. This open application programming interface (API) platform allows digital identity authorities such as central and state government entities, credit information companies, and banks to share information, expediting the data collection process for loan approvals. This automation not only reduces manual work but also enhances transparency, scalability, and efficiency, ultimately benefiting both borrowers and lenders.
Mahindra concluded his tweet by applauding the RBI and India for taking a digital leadership position in financial innovation. The PTPFC has the potential to transform lending processes, especially in underserved rural areas, by making credit more accessible and efficient.
