Axis Bank, one of the largest private sector banks in India, today announced the launch of two lending products powered by the public tech platform for Frictionless Credit (PTPFC), introduced by the Reserve Bank Innovation Hub (RBIH), a wholly owned subsidiary of the RBI. The RBI had earlier in the week announced the launch of the PTPFC.
Axis Bank will offer Kisan Credit Card (KCC) and unsecured MSME loans to small business customers, powered by the platform. Both products will be offered in a completely digital manner and require no submission of documents by customers. As a pilot, Kisan Credit Cards will be offered in Madhya Pradesh and will be available to customers for up to ₹1.6 lakh to start with. MSME loans will be available across the country and will offer loans up to ₹10 lakh to customers.
As part of the pilot, Axis Bank will leverage the PTPFC for accessing data for customers in a fully consented and secure manner. These include PAN validation, Aadhaar eKYC, Account Aggregator data, verification of land records, and penny drop service to validate bank accounts. Given that the data will come directly from authenticated sources, the Bank expects to be able to offer faster and better credit services to customers.
Commenting on the announcement, Rajiv Anand, Deputy Managing Director, Axis Bank, said, “Axis Bank believes in the power of ‘OPEN’ Banking, and we have been continuously investing in digital-first products that reimagine customer propositions. We have been early adopters of many innovative technology frameworks such as UPI, Account Aggregator ecosystem, Video KYC, etc., and are excited to participate in the public tech platform for Frictionless Credit initiative of RBIH, to launch Kisan Credit Cards and MSME loans. This platform will bring immense efficiency to the lending process in terms of reduction of costs, quicker disbursement, and scalability. Meaningful growth in India can be driven by expanding the credit fold, and we are happy to continue playing a role in helping millions of Indians fulfill their financial dreams and aspirations.”
Speaking on the launch, Sameer Shetty, President & Head - Digital Banking and Transformation, Axis Bank, said, “The launch of the PTPFC by the RBIH is a milestone event and adds to the already rich digital public infrastructure available in the country. Through the PTPFC, we will be able to access a variety of data required for underwriting directly from authenticated sources in a fully customer-consented and secure manner. This initiative by the RBI and RBIH will shepherd a new era of democratization of credit and bring down costs of lending to the current credit-deprived segments while maintaining good credit quality. Axis Bank is privileged to be one of the first banks to introduce products leveraging this platform and we are very optimistic about the potential it holds”.
Based on the learnings from this pilot, the Bank will expand the scale of existing products and launch new products on the platform in a calibrated manner. The products will be available in both self-serve and assisted mode, to enable maximum reach and support to customers through the journey.