RBI to run pilot for digitising Kisan Credit Card lending in MP, Tamil Nadu

Project aims to prune costs and turn-around time for borrowers, will entail automation of various processes within banks and integration of their systems with those of service providers

The Reserve Bank of India will run the pilot projects for complete digitalisation of Kisan Credit Card (KCC) lending from this month in the select districts of Madhya Pradesh and Tamil Nadu. The digitalisation aims to make KCC-based lending more efficient by reducing costs and turn-around time for borrowers, and improving credit flow to the rural population.

RBI in a statement said the pilot is being developed by the Reserve Bank Innovation Hub (RBIH). Union Bank of India is the partner bank in Madhya Pradesh, while Federal Bank is the partner bank in Tamil Nadu. State governments will actively co-operate in