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Open Credit Enablement Network (OCEN) for MSMEs
Why is it in news?
- The Indian Software Products Industry Round Table (iSPIRT), which is a think tank, has developed a credit platform.
- A countrywide pilot of the newly-developed credit protocol infrastructure for the democratisation of credit will start within a fortnight.
- The countrywide pilots will involve multiple banks and thousands of MSMEs.
Details:
- The credit protocol infrastructure is known as Open Credit Enablement Network (OCEN).
- OCEN will mediate the interactions between loan service providers, usually fintechs and mainstream lenders, including all large banks and NBFCs.
- OCEN is a common language for lenders and credit seekers.
- With this, credit will become more accessible for a large number of entrepreneurs and small businesses in the country.