Bank of India Joins PSB Xchange to Expand Digital Supply Chain Financing Ecosystem

Bank of India Joins PSB Xchange to Expand Digital Supply Chain Financing Ecosystem​

PSB Alliance Pvt. Ltd and Bank of India have entered into an agreement, positioning the bank as a lending partner on the PSB Xchange platform, which is described as India's unified digital working capital finance ecosystem. This collaboration aims to significantly strengthen the availability of institutional credit and supply chain financing for Micro, Small, and Medium Enterprises (MSMEs) associated with anchor corporates.

The partnership facilitates the delivery of supply chain finance through a streamlined digital process. Bank of India will provide this specialized finance to eligible borrowers linked to participating anchor corporates utilizing PSB Xchange. The platform enables a standardized approach covering digital onboarding, credit assessment, and financing. This move is expected to expand Bank of India's reach in digital supply chain finance while ensuring faster access to institutional credit for MSMEs.

Strengthening the Digital Financing Ecosystem​

PSB Xchange functions as a centralized hub, connecting various ecosystem participants, including lenders, corporates, and associated partners. The integration of Bank of India into this network boosts the platform's lender base, thereby broadening the availability of institutional finance across multiple industry dealer ecosystems.

By utilizing the shared infrastructure provided by PSB Xchange, the need for complex point-to-point integrations is reduced. This efficiency supports quicker program implementation and enhanced portfolio monitoring within the supply chain finance sector.

Stakeholder Perspective on MSME Growth​

The collaboration has garnered positive responses from key stakeholders involved in building India's business ecosystem.

Vinayak Shukla, General Manager at Bank of India, noted that dealers and MSMEs are integral to India’s distribution network. He stated that participation on PSB Xchange allows Bank of India to deliver timely, digitally enabled working capital solutions to dealers associated with established corporate anchors, aligning with their focus on strengthening MSME financing and formal institutional credit access.

Anjali Mohanty, MD & CEO of PSB Alliance, emphasized the necessity of collaborative digital frameworks in modern supply chain finance. She stated that through PSB Xchange, the platform enables such frameworks by unifying lenders, corporates, and ecosystem partners, significantly strengthening the network for MSMEs seeking institutional financing.

Raja Debnath, Managing Director of Veefin Group, highlighted Bank of India's inclusion as a crucial milestone in bolstering the PSB Xchange ecosystem. He added that bringing the bank’s lending capabilities onto a unified digital platform allows corporate dealer networks to access institutional finance efficiently and quickly, illustrating how technology and public sector banks can jointly expand working capital accessibility for MSMEs.

Future Outlook for Supply Chain Finance​

The addition of Bank of India further strengthens PSB Xchange's capacity to support diverse supply chain finance programs across various industries. The platform is committed to continuously expanding its network of lenders, corporates, and ecosystem partners to improve access to institutional working capital financing nationwide.

About PSB Xchange
PSB Xchange is a multi-lender digital working capital ecosystem powered by PSB Alliance and developed by Veefin. It connects banks, NBFCs, fintechs, corporates, and MSMEs to enable the digital execution of supply chain finance and working capital programs.

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