On August 26, Reserve Bank of India (RBI) Governor Shaktikanta Das announced the introduction of a new technological platform, the Unified Lending Interface (ULI), designed to provide seamless credit access by significantly reducing the time required for loan appraisals, especially for rural and small-scale borrowers.
Governor Das revealed that the RBI is currently piloting ULI, which aims to address the substantial unmet demand for credit across various sectors, particularly in agriculture and micro, small, and medium enterprises (MSMEs). He also mentioned that a nationwide launch of ULI is on the horizon.
“Similar to how the Unified Payments Interface (UPI) revolutionized the payments ecosystem, we anticipate that ULI will transform the lending landscape,” Das stated during his address at the Global Conference on Digital Public Infrastructure (DPI) and Emerging Technologies in Bengaluru.
As part of the RBI’s broader digitalization efforts, ULI facilitates the seamless flow of digital information—including land records—from multiple data providers to lenders. This innovation is expected to significantly cut down the time required for credit appraisals, particularly benefiting rural and smaller borrowers. The platform’s plug-and-play architecture is designed to allow quicker access to crucial information, enabling lenders to make informed decisions more efficiently.
Governor Das emphasized that ULI is built on a foundation of borrower consent, ensuring that data privacy is fully protected. The platform simplifies the complex process of technical integration, providing borrowers with quicker, hassle-free credit delivery with minimal documentation.
The RBI governor also highlighted the evolution of India’s digital infrastructure, noting that the earlier focus on the trinity of Jan Dhan-Aadhaar-Mobile (JAM) has now expanded to include UPI, ULI, and Central Bank Digital Currency (CBDC). This new trinity represents a significant leap in India’s Digital Public Infrastructure journey.
Das further mentioned that the central bank is working on integrating UPI and CBDC to streamline payments and enhance financial inclusion, with both ULI and CBDC designed to be interoperable. Additionally, he noted that India will chair the Global Partnership for AI in 2024, collaborating with 29 countries to support cutting-edge research.