The Reserve Bank of India (RBI) announced the launch of the Unified Lending Interface (ULI), a groundbreaking platform designed to facilitate frictionless credit flow, particularly for smaller and rural borrowers.
Building upon the success of its pilot project, the ULI aims to revolutionize the lending landscape in India by digitizing access to customer data and streamlining the credit appraisal process. The platform leverages standardized APIs and a “plug and play” approach to ensure seamless information sharing between lenders and data service providers.
“The ULI represents a significant step forward in India’s digital infrastructure journey,” said RBI Governor Shaktikanta Das. “It will complement the existing JAM (Jan Dhan Yojana, Aadhaar, Mobile) and UPI (Unified Payments Interface) trinity, providing a comprehensive digital ecosystem for financial services.”
The ULI is expected to address the unmet demand for credit in various sectors, especially agriculture and MSMEs. By reducing the time taken for credit appraisal and eliminating the need for extensive documentation, the platform will empower borrowers to access credit more efficiently and affordably.
“Just as UPI transformed the payments ecosystem, we anticipate that the ULI will play a pivotal role in transforming the lending space in India,” Das added.
The RBI also emphasized the importance of interoperability between different payment systems, including Central Bank Digital Currencies (CBDCs). While technical challenges may exist, the Governor stressed the need for collaboration and standardization to achieve seamless cross-border transactions.
The ULI is a testament to the RBI’s commitment to leveraging technology to enhance financial inclusion and drive economic growth in India.
