The Reserve Bank of India (RBI)‘s pilot of a “public tech platform” to facilitate smoother credit transactions by ensuring digital information for KYC is shared with loaners commenced yesterday, 17 August.
The platform could be very incentivising also for banks and financial institutions to encourage them to advance payments.
The pilot will involve cooperation from state governments, banks, digital identity providers and credit loan companies to provide digital information for credit transaction assessments.
Underpinning streamlined transactions, digital information relating to KYC (Knowing Your Customer) procedures must be securely shared with lenders, in this instance, or any financial institution. The platform integrates and leverages India’s national digital identity system, Aadhaar, which serves 1.2 billion people in the population.
It’s “the most sophisticated ID program in the world” – according to Paul Romer, former chief economist at the World Bank – which offers a strengthening combination of policy, technology, design and implementation to verify people.
Since its inception in 2019, the success of Aadhaar has been evident by the adoption figures within the population of people having been issued with a 12-digit personalised Aadhaar number.
Countries like Malaysia and Singapore, the returning home of Identity Week Asia on 7-8 November, have followed suit in developing contagious national digital identity initiatives.
The piloting stage of the “public tech platform” will focus on varieties of loans (including personal loans, card loans and home loans) to help participating big banks that offer these services obtain digital information from individuals as part of KYC processes, such as PAN validation and address information.
The investment in public infrastructure will be welcomed by the banking and finance sector.
The Reserve Bank of India, which owns its subsidiary Reserve Bank Innovation Hub, confirmed the “end-to-end digital platform will have an open architecture, open Application Programming Interfaces (APIs) and standards, to which all financial sector players can connect seamlessly in a ‘plug and play’ model”.
As the pilot unfolds, key takeaways and learnings may expand the range of the pilot with more solutions, information providers and lenders.
We cannot wait to be based in Singapore, Asia, to discuss the wide-ranging feats of identity innovation across this region at Identity Week Asia 2023.
Register here: https://secure.terrapinn.com/V5/step1.aspx?E=10700&p=1