Bank of Baroda, UCO Bank & others join PSBXchange to boost MSME credit flow

By Gloria Methri

Four public sector banks—Bank of Baroda, Central Bank of India, Indian Overseas Bank, and UCO Bank—have joined PSBXchange, a unified Supply Chain Finance (SCF) platform by PSB Alliance, powered by Veefin Solutions.

This platform aims to be a common technology bridge for banks and NBFCs to streamline supply chain financing and small business loans. It is the first of its kind globally, linking FinTechs, B2B marketplaces, accounting service providers, and new-age data providers with multiple lenders’ core banking systems.

With MSMEs forming the backbone of India’s economy, this collaboration between PSB Alliance and Veefin will play a crucial role in meeting their financial needs and ensuring they benefit from the digital transformation of credit delivery.

Anjali Mohanty, Managing Director, PSB Alliance, said, “By integrating with this unified digital infrastructure, the banks will actively extend credit to a broader and more diverse base of SMEs across India. Their wide reach, combined with PSBXchange’s digital capabilities, is bringing structured supply chain finance to MSMEs that have traditionally remained outside the formal credit system. Powered by Veefin’s technology at the backend, we are ensuring that access to working capital remains equitable, data-driven, and accessible across tiers and geographies.”

Raja Debnath, Chairperson, Co-Founder & CEO at Veefin Group said, “Powering the PSBXchange platform is as integral to the economy as powering its very backbone. With MSMEs contributing over ~30% to the GDP, this platform is set to redefine financial inclusion. By offering MSMEs faster access to higher-quality credit, the PSBXchange platform accelerates their growth while strengthening the entire lending process. The platform Veefin has built is now opening doors to unprecedented opportunities, and the potential it holds for reshaping the lending landscape is immense. This platform will not only transform the way MSMEs borrow but redefine the very nature of borrowing in the country”

Eric Anklesaria, Advisor, PSB Alliance, added, “PSB Alliance was formed with a mission to develop effective propositions, whether it was with how we revolutionised doorstep banking or building the World’s Largest Unified SCF Platform – PSBXchange. This consortium has taken up projects that are transforming the banking industry by increasing accessibility and inclusivity across the ecosystem.”