Nabard and the RBI wing collaborate on agriculture loans

In order to establish a system that would allow for quicker processing of agricultural loans, the Reserve Bank Innovation Hub (RBIH) and the National Bank for Agriculture and Rural Development (Nabard) have cooperated.

For India’s 120 million farmers, the partnership between Nabard and RBIH, a fully-owned subsidiary of the RBI, would expedite the loan application process and cut the turnaround time from three to four weeks to only five minutes. By expanding loan availability and drastically lowering operating costs for lenders, the program will improve the efficiency and inclusivity of the rural financial ecosystem.

Nabard intends to link the RBIH Public Tech Platform for Frictionless Credit (PTPFC) with its e-KCC loan origination system site. More than ten states have complied with the PTPFC’s request to make digital land records public, allowing lenders to easily get reliable information. “Farmers will receive instantaneous doorstep credit delivery thanks to the digitization of agricultural lending,” said Shaji KV, Chairman of Nabard.