OCEN set to create credit culture among small businesses

CNBC-TV18 special, Big Deal, puts the spotlight today on the Open Credit Enablement Network (OCEN), which is a digital infrastructure being created by the government to democratize the small ticket credit market in India, in line with the government's financial inclusion focus.

Under the OCEN gateway, small sachet loans to small businesses will be possible by a collaborative network of the front-end apps, which are into digital commerce and have the reach, as well as the lenders that have the ability to disperse the loans, but do not have the reach.

This will reduce the effort and customer acquisition costs for the lenders, which was a big deterrent in serving the businesses with lower ticket cashflow requirements.