Four major public sector banks in India, including Bank of Baroda, Central Bank of India, Indian Overseas Bank, and UCO Bank, have joined PSBXchange, a unified Supply Chain Finance (SCF) platform. This platform, powered by Veefin Solutions, aims to streamline supply chain financing and small business loans by linking FinTechs, B2B marketplaces, accounting service providers, and data providers with multiple lenders’ core banking systems.
The platform, PSBXchange, is the first of its kind globally, and its integration with the banks’ systems will allow them to extend credit to a broader and more diverse base of small and medium-sized enterprises (SMEs) across India. This initiative is crucial, as SMEs form the backbone of India’s economy and play a significant role in contributing to the country’s GDP.
According to Anjali Mohanty, Managing Director of PSB Alliance, the platform’s digital capabilities will bring structured supply chain finance to MSMEs that have traditionally remained outside the formal credit system. The platform’s goal is to ensure that access to working capital remains equitable, data-driven, and accessible across tiers and geographies.
Raja Debnath, Chairperson, Co-Founder & CEO at Veefin Group, believes that the platform has the potential to redefine financial inclusion and accelerate the growth of MSMEs by offering them faster access to higher-quality credit. The platform may also transform the way MSMEs borrow and redefine the nature of borrowing in the country.
In conclusion, the collaboration between PSB Alliance and Veefin Solutions aims to promote digital transformation in credit delivery and ensure that MSMEs have equal access to working capital. By integrating PSBXchange with multiple lenders’ core banking systems, the banks can extend credit to a broader base of SMEs, thereby promoting financial inclusion and supporting the growth of the Indian economy.