RBI To Launch Pilot For End-To-End Digitalisation Of Kisan Credit Card Lending

The Reserve Bank of India on Friday (2 September) announced a pilot project for end-to-end digitalisation of Kisan Credit Card (KCC) lending, developed by the Reserve Bank Innovation Hub (RBIH).

The pilot project would entail automation of various processes within banks and integration of their systems with the service providers.

The proposed digitalisation of the KCC lending process will make it more efficient, reduce costs for borrowers and reduce Turn Around Time (TAT) significantly, the RBI said in a statement.

The pilot will commence in September 2022 in select districts of Madhya Pradesh and Tamil Nadu with Union Bank of India and Federal Bank, respectively, as partner banks and with active cooperation of the state governments.

Based on the learnings from the pilot, RBI plans to expand the digitalisation of KCC lending to other districts in these two states and gradually across the country, according to the statement.

RBI said that the pilot project on digitalisation of KCC lending is expected to play a pivotal role in facilitating credit flow to the unserved and underserved rural population by making the credit process faster and more efficient.

When fully implemented, this is expected to transform the rural credit delivery system of the country, it added.