• The Reserve Bank of India (RBI) has announced the development of a pilot Public Tech Platform for ‘frictionless credit’ by the Reserve Bank Innovation Hub (RBIH).
• The Public Tech Platform would enable delivery of frictionless credit by facilitating a seamless flow of required digital information to lenders.

WHAT IS FRICTIONLESS CREDIT?

• Under digitalization, the digital credit delivery landscape is characterised by a multitude of data points required for credit assessment, distributed among different entities such as central and state governments, banks, credit information agencies, digital identity authorities, and more.
• This impedes the seamless and timely dispensation of rule-based lending processes.
• Frictionless credit means to streamline digital credit delivery by creating an open architecture using Application Programming Interfaces (APIs) to integrate various financial stakeholders, enhancing efficiency and innovation.

ABOUT RBIH

• It is a wholly-owned subsidiary of RBI.
• RBIH aims to create an ecosystem that focuses on promoting access to financial services and products for the low-income population in the country.