Today's Headlines - 22 August 2023
RBI's pilot project for facilitating frictionless credit
GS Paper - 3 (Economy)
In a move aimed at easing access to credit, the Reserve Bank of India (RBI) launched a pilot project in the form of a "Public Tech Platform for Frictionless Credit" . The move seeks to give digital information to lenders to expedite access to credit or loans.
What is the 'Public Tech Platform for Frictionless Credit'?
It is an end-to-end digital platform that will have an open architecture, open Application Programming Interfaces (APIs), and standards to which all banks can connect in a "plug and play" model.
The Reserve Bank Innovation Hub, a wholly-owned subsidiary of the central bank, has developed the platform.
What is frictionless credit?
Frictionless credit is a borrowing approach that seeks to streamline the lending process for consumers.
Unlike the traditional credit systems, where individuals need to go through extensive paperwork, credit checks and lengthy approval procedures, frictionless credit promises a smoother and faster experience.
RBI's project is designed to smoothen Kisan Credit Card lending by automating various processes within the banks and integrating their systems with service providers.
How will the public tech platform help disburse loans?
Before a credit or loan is approved, it often takes lenders several days, a week or even months to process several sets of information.
Currently, data has to be sourced from credit information bureaus, account aggregators, and banks, which has led to obstacles in the timely delivery of lending.
The public tech platform seeks to make this process seamless by providing all the required information in one place to facilitate credit.
Linkages with other services
The public tech platform will facilitate linkages with services such as Aadhaar e-KYC, PAN validation, Aadhaar e-signing, account aggregation and house/property search data, among other things.
On 17 August 2023, Axis Bank said that it would offer Kisan Credit Card (KCC) and unsecured MSME loans to small business customers on the public tech platform.
As a pilot, Kisan Credit Cards will be offered in Madhya Pradesh and will be available to customers for up to Rs 1.6 lakh to begin with.
MSME loans will be available across the country and loans up to Rs 10 lakh will be offered to customers.
#upsc #news #headline #credit #economy #RBI #project #pilot #publictech #platform #digital #architecture #plugandplay #centralbank #consumers #paperwork #smoothern #kisan #card #systems #loans #bureaus #aggregators #KYC #PAN #AADHAAR #kisancreditcards #madhyapradesh #MSME #validation #disburse
RBI's pilot project for facilitating frictionless credit
GS Paper - 3 (Economy)
In a move aimed at easing access to credit, the Reserve Bank of India (RBI) launched a pilot project in the form of a "Public Tech Platform for Frictionless Credit" . The move seeks to give digital information to lenders to expedite access to credit or loans.
What is the 'Public Tech Platform for Frictionless Credit'?
It is an end-to-end digital platform that will have an open architecture, open Application Programming Interfaces (APIs), and standards to which all banks can connect in a "plug and play" model.
The Reserve Bank Innovation Hub, a wholly-owned subsidiary of the central bank, has developed the platform.
What is frictionless credit?
Frictionless credit is a borrowing approach that seeks to streamline the lending process for consumers.
Unlike the traditional credit systems, where individuals need to go through extensive paperwork, credit checks and lengthy approval procedures, frictionless credit promises a smoother and faster experience.
RBI's project is designed to smoothen Kisan Credit Card lending by automating various processes within the banks and integrating their systems with service providers.
How will the public tech platform help disburse loans?
Before a credit or loan is approved, it often takes lenders several days, a week or even months to process several sets of information.
Currently, data has to be sourced from credit information bureaus, account aggregators, and banks, which has led to obstacles in the timely delivery of lending.
The public tech platform seeks to make this process seamless by providing all the required information in one place to facilitate credit.
Linkages with other services
The public tech platform will facilitate linkages with services such as Aadhaar e-KYC, PAN validation, Aadhaar e-signing, account aggregation and house/property search data, among other things.
On 17 August 2023, Axis Bank said that it would offer Kisan Credit Card (KCC) and unsecured MSME loans to small business customers on the public tech platform.
As a pilot, Kisan Credit Cards will be offered in Madhya Pradesh and will be available to customers for up to Rs 1.6 lakh to begin with.
MSME loans will be available across the country and loans up to Rs 10 lakh will be offered to customers.
#upsc #news #headline #credit #economy #RBI #project #pilot #publictech #platform #digital #architecture #plugandplay #centralbank #consumers #paperwork #smoothern #kisan #card #systems #loans #bureaus #aggregators #KYC #PAN #AADHAAR #kisancreditcards #madhyapradesh #MSME #validation #disburse
Today's Headlines - 03 September 2023
Navy's stealth frigate Mahendragiri launched
GS Paper - 3 (Defence)
The seventh stealth frigate, under the Indian Navy's Project 17 A, Mahendragiri, was launched on 1 September 2023. Built at Mazagon Dock Shipbuilders Ltd (MDL), the vessel was developed as part of the push towards the Aatmnirbhar Bharat idea.
More about the frigate
Mahendragiri, a technologically advanced warship stands as a symbol of India's determination to embrace its rich naval heritage, while propelling itself towards a future of indigenous defence capabilities.
Mahendragiri, named after a mountain peak in Eastern Ghats located in the state of Odisha, is the seventh ship of the Project 17A Frigates.
These warships are follow-ons of the Project 17 Class Frigates (Shivalik Class), with improved stealth features, advanced weapons and sensors, and platform management systems.
#upsc #news #headline #navy #stealth #frigate #mahendragiri #launched #defence #Indiannavy #mazagon #dock #shipbuilders #MDL #Aatmnirbharbharatidea #technologically #warship #navalheritage #easternghats #project #shivalikclass #weapons #sensors #systems
Navy's stealth frigate Mahendragiri launched
GS Paper - 3 (Defence)
The seventh stealth frigate, under the Indian Navy's Project 17 A, Mahendragiri, was launched on 1 September 2023. Built at Mazagon Dock Shipbuilders Ltd (MDL), the vessel was developed as part of the push towards the Aatmnirbhar Bharat idea.
More about the frigate
Mahendragiri, a technologically advanced warship stands as a symbol of India's determination to embrace its rich naval heritage, while propelling itself towards a future of indigenous defence capabilities.
Mahendragiri, named after a mountain peak in Eastern Ghats located in the state of Odisha, is the seventh ship of the Project 17A Frigates.
These warships are follow-ons of the Project 17 Class Frigates (Shivalik Class), with improved stealth features, advanced weapons and sensors, and platform management systems.
#upsc #news #headline #navy #stealth #frigate #mahendragiri #launched #defence #Indiannavy #mazagon #dock #shipbuilders #MDL #Aatmnirbharbharatidea #technologically #warship #navalheritage #easternghats #project #shivalikclass #weapons #sensors #systems
Today's Headlines - 06 September 2023
UPI QR Code-CBDC interoperability
GS Paper - 3 (Economy)
With banks enabling the interoperability of Unified Payments Interface’s (UPI) Quick Response (QR) code with their central bank digital currency (CBDC) or e₹ application, users of retail digital rupee will be able to make transactions by scanning any UPI QR at a merchant outlet. Merchants can also accept digital rupee payments through their existing UPI QR codes. This integration of UPI and CBDC is part of the Reserve Bank of India’s (RBI) ongoing pilot project on pushing the retail digital rupee (e₹-R).
What is interoperability?
Interoperability is the technical compatibility that enables a payment system to be used in conjunction with other payment systems, according to the RBI.
Interoperability allows system providers and participants in different systems to undertake, clear and settle payment transactions across systems without participating in multiple systems.
Interoperability between payment systems contributes to achieving adoption, co-existence, innovation, and efficiency for end users.
What is UPI QR code-CBDC interoperability?
Interoperability of UPI with the digital rupee means all UPI QR codes are compatible with CBDC apps. Initially, when the pilot for the retail digital rupee was launched, the e₹-R users had to scan a specific QR code to undertake transactions.
However, with the interoperability of the two, payments can be made using a single QR code.
The digital rupee issued by the RBI, or the CBDC, is a tokenised digital version of the rupee.
The e₹ is held in a digital wallet, which is linked to a customer’s existing savings bank account. UPI is directly linked to a customer’s account.
How will it benefit customers and merchants?
The interoperability of UPI and CBDC will ensure seamless transactions between a customer and merchant without having the need to switch between multiple digital platforms.
It will allow a digital rupee user to make payments for their daily needs, such as groceries and medicines, by scanning any UPI QR codes at any merchant outlet.
Even merchants are not required to keep a separate QR code to accept the digital rupee payments. They can accept CBDC payments on their existing QR code.
What is a QR code?
A Quick Response (QR) code consists of black squares arranged in a square grid on a white background, which can be read by an imaging device such as a camera.
It contains information about the item to which it is attached, according to the National Payments Corporation of India (NPCI). QR code is an alternate contactless channel of payments. It allows merchants or businesses to accept payments from their customers directly into their bank accounts.
#upsc #news #headline #UPI #QR #code #CBDC #interoperability #economy #digital #currency #payments #RBI #adopation #transactions #systems #merchants #customer #account #benefit #NPCI #camera #wallet #rupee #multipleplatforms #national #corporations #india
UPI QR Code-CBDC interoperability
GS Paper - 3 (Economy)
With banks enabling the interoperability of Unified Payments Interface’s (UPI) Quick Response (QR) code with their central bank digital currency (CBDC) or e₹ application, users of retail digital rupee will be able to make transactions by scanning any UPI QR at a merchant outlet. Merchants can also accept digital rupee payments through their existing UPI QR codes. This integration of UPI and CBDC is part of the Reserve Bank of India’s (RBI) ongoing pilot project on pushing the retail digital rupee (e₹-R).
What is interoperability?
Interoperability is the technical compatibility that enables a payment system to be used in conjunction with other payment systems, according to the RBI.
Interoperability allows system providers and participants in different systems to undertake, clear and settle payment transactions across systems without participating in multiple systems.
Interoperability between payment systems contributes to achieving adoption, co-existence, innovation, and efficiency for end users.
What is UPI QR code-CBDC interoperability?
Interoperability of UPI with the digital rupee means all UPI QR codes are compatible with CBDC apps. Initially, when the pilot for the retail digital rupee was launched, the e₹-R users had to scan a specific QR code to undertake transactions.
However, with the interoperability of the two, payments can be made using a single QR code.
The digital rupee issued by the RBI, or the CBDC, is a tokenised digital version of the rupee.
The e₹ is held in a digital wallet, which is linked to a customer’s existing savings bank account. UPI is directly linked to a customer’s account.
How will it benefit customers and merchants?
The interoperability of UPI and CBDC will ensure seamless transactions between a customer and merchant without having the need to switch between multiple digital platforms.
It will allow a digital rupee user to make payments for their daily needs, such as groceries and medicines, by scanning any UPI QR codes at any merchant outlet.
Even merchants are not required to keep a separate QR code to accept the digital rupee payments. They can accept CBDC payments on their existing QR code.
What is a QR code?
A Quick Response (QR) code consists of black squares arranged in a square grid on a white background, which can be read by an imaging device such as a camera.
It contains information about the item to which it is attached, according to the National Payments Corporation of India (NPCI). QR code is an alternate contactless channel of payments. It allows merchants or businesses to accept payments from their customers directly into their bank accounts.
#upsc #news #headline #UPI #QR #code #CBDC #interoperability #economy #digital #currency #payments #RBI #adopation #transactions #systems #merchants #customer #account #benefit #NPCI #camera #wallet #rupee #multipleplatforms #national #corporations #india