RBL Bank Launches Aadhaar Payment Bridge System for cashless loan disbursements

RBL Bank Launches Aadhaar Payment Bridge System for cashless loan disbursements. Maharashtra based private sector lender RBL Bank has launched Aadhaar Payment Bridge System (APBS) on November 30, 2016, for small ticket micro-finance loan disbursements. According to bank Head Rajeev Ahuja, it is the first bank to launch the APBS on its platform to implement the government’s idea of

digital banking.

rbl-bank-launches-aadhaar-payment-bridge-system-for-cashless-loan-disbursementsiii. APBS system aims towards cashless loan disbursements, which otherwise is dominated by physical cash.

iv.The APBS system can now enable Micro Finance Institutions (MFIs) to disburse loan amounts directly in Aadhaar-enabled bank accounts through RBL Bank.

v. It has been developed by National Payments Corporation of India (NPCI) mainly to process government subsidies or direct benefit transfer (DBT) to various government scheme beneficiaries.

vi. The APBS is of great significance at a time when cash availability in the market is actually reducing due to governments recent decision to abolish Rs 500/1000 banknotes from circulation to check black money and widen the tax base.

National Payments Corporation of India (NPCI)

♦ NPCI is a not-for-profit organisation registered under section 25 of the Companies Act 2013 for all retail payment systems in India, to allow all Indian citizens to have unrestricted access to e-payment services.

♦ Founded: 2008

♦ Headquartered: Mumbai, Maharashtra