Nabard, RBI wing join hands over farm loans

CHANDIGARH, APRIL 25

The National Bank for Agriculture and Rural Development (Nabard) has partnered with Reserve Bank Innovation Hub (RBIH) to put in place a system which will enable faster processing of agricultural loans.

The collaboration between Nabard and RBIH, a wholly-owned subsidiary of the RBI, will streamline the lending process and reduce the turnaround time for loans from three to four weeks to just five minutes for India’s 120 million farmers. The initiative will significantly reduce operational overheads for lenders while deepening access to credit, thereby fostering a more inclusive and efficient rural financial ecosystem.

For the purpose, Nabard will integrate its e-KCC loan origination system portal with the Public Tech Platform for Frictionless Credit (PTPFC) of RBIH. The PTPFC has seen the participation of over 10 states in making digital land records available to facilitate the seamless flow of credible information for lenders. “The digitisation of agricultural lending will ensure instant doorstep delivery of credit to farmers,” Shaji KV, Chairman, Nabard, said.