The Central Bank of India (CBI) has made a significant advancement in the country’s banking sector by completing the first fully digital supply chain finance (SCF) transaction on the PSB Xchange platform. This platform, launched by PSB Alliance, is a unified multi-lender platform designed to connect public and private sector banks, non-banking financial companies (NBFCs), and fintech companies with corporates and their channel partners. The transaction marked the first time a fintech-originated corporate lead was seamlessly processed through the PSB Xchange ecosystem, from the fintech partner to a participating lender, and finally to the corporate, all without manual intervention.
The PSB Xchange platform, developed in partnership with Veefin Solutions, offers a transparent, efficient, and scalable framework for digital credit delivery. Its primary goal is to strengthen public sector banks’ (PSBs) ability to serve micro, small, and medium enterprises (MSMEs) and streamline credit access through real-time, multi-institutional integration. This achievement is a key milestone in advancing digital supply chain financing across PSBs, as noted by Anjali Mohanty, CEO & MD of PSB Alliance.
The successful completion of this transaction reflects the commitment of Central Bank of India to driving excellence in supply chain finance, as stated by S.S. Murthy, GM – MSME. Raja Debnath, Chairperson & Managing Director of Veefin Group, viewed this milestone as a validation of the vision to build a single interoperable digital rail where lenders, fintechs, and corporates can transact seamlessly. This development is seen as a proud moment for India’s digital credit ecosystem and the future of supply chain finance.
The use of PSB Xchange for this transaction demonstrates the potential for digital platforms to enhance the efficiency and accessibility of financial services for businesses. By leveraging technology, PSB Xchange aims to reduce the barriers and complexities associated with traditional financing models, thereby supporting the growth and development of MSMEs in India. As the country continues to embrace digital transformation, initiatives like PSB Xchange are expected to play a crucial role in shaping the future of the banking and financial services sector.