RBI Launches Unified Lending Interface to Speed Up Credit Access

The Reserve Bank of India (RBI) has introduced a new technology platform called the Unified Lending Interface (ULI) to make credit disbursement faster, especially for rural and smaller borrowers.

Governor’s Statement

RBI Governor Shaktikanta Das announced on Monday that ULI aims to address the high demand for credit in agriculture and small and medium-sized enterprises (SMEs). "ULI will streamline the flow of digital information, such as state land records, from various data providers to lenders. This will significantly reduce the time needed for credit evaluations, particularly for smaller and rural borrowers," Das said. He added that the platform will soon be launched nationwide.

Previous Pilot Program

Last year, the RBI began a pilot program to test this digital platform. The goal was to provide quick digital information to lenders, enabling them to process credit applications within minutes. Governor Das compared ULI to the Unified Payments Interface (UPI), noting that just as UPI revolutionized payments, ULI is expected to transform the lending process.

Digitalization of Banking

Das spoke about the RBI’s efforts to digitize banking services at the Global Conference on Digital Public Infrastructure and Emerging Technologies in Bengaluru. He emphasized that ULI will prioritize borrower consent and ensure data privacy.

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New Digital Trinity

Das introduced the concept of a new digital "trinity." Previously, the combination of Jan Dhan Accounts, Aadhaar, and Mobile Phones (JAM) was key. Now, the new trinity includes JAM, UPI, and ULI, along with the gradual rollout of Central Bank Digital Currency (CBDC). "This initiative simplifies technical integration, helps borrowers access credit more easily, and speeds up the process without needing extensive paperwork," Das added.

The introduction of the Unified Lending Interface marks a significant step in modernizing India's financial system. By leveraging digital technology to simplify and expedite credit access, the RBI aims to support growth in key sectors such as agriculture and small businesses. This new platform promises to reduce barriers for smaller and rural borrowers, enhance efficiency in lending processes, and contribute to a more inclusive financial ecosystem.