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RBL Bank launches Aadhaar-based disbursment of mirco loans

Bank said it is a drive towards cashless loan disbursements, which otherwise is dominated by physical cash

Press Trust of India  |  New Delhi 

RBL Bank launches Aadhaar-based disbursment of mirco loans

Private sector on Wednesday said it has launched 'Payment Bridge System' (APBS) for small ticket micro-loan disbursements.

The bank said it is the first bank to launch the APBS on its platform and the intent is to meet the government's target on

"This was achieved by doing the first successful cashless disbursement to various beneficiaries in the rural segment across the country," the bank said in a release.

The bank said it is a drive towards cashless loan disbursements, which otherwise is dominated by physical

The APBS system can now enable MFIs to disburse loan amounts directly in Aadhaar-enabled bank accounts through

It has been developed by mainly to process subsidies or direct benefit transfer (DBT) to various scheme beneficiaries.

"This unique idea of using an existing platform for disbursing micro loans is a very big step in the direction of moving towards a cashless society in the rural segment," said Rajeev Ahuja, Head - Strategy,

The APBS also assumes significance at a time when availability in the market is actually crippled due to government's recent decision to abolish Rs 500/1000 banknotes from circulation to check black money and widen the tax base.

First Published: Wed, November 30 2016. 20:13 IST
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