Five products related to MSME lending have completed the test phase under the RBI’s regulatory sandbox cohort. The central bank stated in a press release that regulated entities may consider these products for adoption.
FinAGG Technologies, Mynd Solutions, Rupifi Technology Solutions, Small Industries Development Bank of India, and SysArc Infomatix have completed the test phase.
FinAGG Technologies’ product ‘Quick Cash Flow’ enables a completely digital cash flow-based credit underwriting process. It provides credit line through co-lending to MSMEs to purchase inventory from large corporates via a smooth digital process.
Mynd Solutions’ product ‘M1xchange Small-Small’ is a one-stop plug and play platform for cash-flow based financing to small MSME sellers on TReDS. Rupifi Technology Solutions’ product ‘Pay by Rupifi’ provides MSMEs real-time access to working capital through digital credit lines which can be used to make purchases from B2B marketplaces.
SIDBI’s product ‘GST Sahay’ is an application developed using Open Credit Enhancement Network (OCEN) and Account Aggregator framework for invoice-based finance to MSMEs. The entire loan cycle is real time, contactless, cash flow based and end to end digital using multiple data points for a smooth loan journey. The application aims to enable multiple use cases for working capital support to MSMEs.
‘LENDperfect – Shishu Mudra,’ a product by SysArc Infomatix, enables end-to-end digital straight-through process (STP) journeys for MSME Mudra Loan in partnership with banks.
Meanwhile, RBI has also announced the fifth cohort which will be theme neutral. Innovative products/services/technologies cutting across various functions in RBI’s regulatory domain will be eligible to apply. Applications can be submitted from October 30, 2023 to November 30, 2023.