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RBI Governor Shaktikanta Das (Image Source: PTI)
The Reserve Bank of India (RBI) is piloting a new platform, the Unified Lending Interface (ULI), designed to revolutionize the credit system in the country, Governor Shaktikanta Das announced on Monday. Speaking at the Global Conference on Digital Public Infrastructure and Emerging Technologies in Bengaluru, Das outlined the ULI’s goals of streamlining credit delivery and improving access for smaller and rural borrowers.
The ULI is intended to reduce the time and complexity associated with credit appraisal by integrating digital information from various sources. Das explained that the platform will facilitate a seamless flow of consent-based digital data, including land records, from multiple service providers to lenders.
This approach aims to simplify technical integrations through standardized APIs, enabling a ‘plug and play’ model for easier access to information. As a result, borrowers will benefit from quicker credit turnaround times and reduced documentation requirements.
The platform is expected to address the unmet credit demand, particularly for agricultural and micro, small, and medium enterprises (MSMEs). Das compared the anticipated impact of ULI to the Unified Payments Interface (UPI), which has significantly transformed India’s payment ecosystem. He expressed optimism that ULI would similarly reshape the lending sector, making credit more accessible and efficient.
In addition to ULI, Das highlighted UPI’s potential to serve as a cost-effective and rapid alternative for cross-border remittances. He suggested that UPI could start with small-value personal remittances and be implemented swiftly.
Das also discussed the broader impact of Digital Public Infrastructure (DPI), noting its role in fostering market innovation, lowering transaction costs, and enhancing financial inclusion. He credited DPI with accelerating India’s financial inclusion achievements, which previously would have taken decades.
The ULI is still in the pilot stage, with a nationwide launch planned based on the pilot’s outcomes.