At the location of the G20 FMCBG summit, RBI installs an innovation pavilion

18 Jul 2023 , 11:29 AM

At the third meeting of the G20 finance ministers and central bank governors (FMCBG) taking place here, the Reserve Bank has set up a booth to display its most recent innovation projects, including a pilot program for ‘Frictionless Credit’ and ‘Central Bank Digital Currency.’ 

The ‘Innovation Pavilion,’ located within the Mahatma Mandir Convention Centre, includes a movie that explains the various aspects of these two ventures.

An experience facility has been established as part of ‘Frictionless Credit’ to provide a hands-on sense of the revolutionary Digital Kisan Credit Card (KCC) and Digital Dairy adventure, according to a statement from RBI.

The digital journey involves opening accounts using e-KYC, and gaining access to the state government’s digital land records, credit bureau scores, and other relevant data. Additionally connected and entirely automated are the document production and loan payout processes.

While the pilot for Digital Dairy is being conducted in Gujarat, the Digital KCC program is now being performed in a few districts in Madhya Pradesh, Tamil Nadu, Maharashtra, Karnataka, and Uttar Pradesh.

The pilots have been put into action in collaboration with RBI’s wholly-owned subsidiary, Reserve Bank Innovation Hub (RBIH).

The exhibits also contain details about the future digital tech platform, which will employ multiple digital data points to provide frictionless credit for various types of loans, such as MSME, personal loans, KCC, dairy loans, etc.

Additionally, live transactions on CBDC-Retail (e) were displayed, appropriately supported by a brief video titled ‘Central Bank Digital Currency- India Story’ that described the idea, inspiration, and use cases of the current pilot in CBDC-Retail (e), as well as the limited interoperability with UPI and the proposals being taken into consideration for future use cases.

It should be mentioned that the CBDC Retail Pilot has expanded from four banks in four locations to thirteen banks in 26 cities, and participating banks have already onboarded about 13 lakh CBDC-R users and 3 lakh merchants.

The RBI stated that it was working toward complete interoperability with UPI QR codes and that the arrangement for a live transaction experience in e-commerce at the pavilion had received positive feedback from visitors.

On Monday, the third G20 FMCBG meeting got underway here.

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