Gandhinagar (Gujarat) [India], July 17 : The Reserve Bank of India (RBI) has showcased its innovations ‘Frictionless Credit’ and ‘Central Bank Digital Currency’ at the innovation pavilion on the sidelines of the 3rd meeting of Finance Ministers and Central Bank Governors (FMCBG) under India’s G20 presidency here at the Mahatma Mandir Convention Centre.
The G20 event is underway in Gujarat’s Gandhinagar and will conclude on Tuesday.
To showcase the 'Frictionless Credit' solution, an experience centre has been set up to give a real-life feel to the transformational Digital Kisan Credit Card (KCC).
The digital KCC showcases to visitors how the digitized land record data can be used to sanction and disburse the loan in a completely digitized and paperless manner without the farmer visiting the bank branch.
The pilot of Digital KCC is presently being run in select districts of Madhya Pradesh, Tamil Nadu, Maharashtra, Karnataka, and Uttar Pradesh.
The pilots have been operationalized with the Reserve Bank Innovation Hub (RBIH), a wholly-owned subsidiary of RBI.
Digital Kisan Credit Card has substantially reduced the operational expenses and opportunity cost and decreased the turnaround time for loan processing from more than two-three weeks to a few minutes for farmers, said Rajesh Bansal, CEO, of Reserve Bank Innovation Hub (RBiH) on the sidelines of the G20 meeting.
Further, live transactions on Digital Retail rupee was being showcased. A short video on ‘Central Bank Digital Currency- India Story’ explaining the concept, motivation, and use cases of the present pilot in CBDC-Retail has been played at the pavilion.
So far, RBI has scaled up the retail digital rupee from 4 banks across 4 cities to 13 banks across 26 cities and around 13 lakh users and 3 lakh merchants have already been on-boarded by participating banks. RBI is working towards full-scale interoperability with the UPI QR code.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor