The Reserve Bank of India (RBI) plans to deploy the Unified Lending Interface (ULI), a platform designed to facilitate seamless credit flow, particularly for small and rural borrowers. RBI Governor Shaktikanta Das announced ULI during the RBI@90 Global Conference, describing it as a game-changer for India’s digital infrastructure, complementing the Unified Payments Interface.
ULI will facilitate the frictionless and consent-based sharing of digital information, like land records, between multiple data providers and lenders. This program is projected to dramatically reduce the time necessary for credit appraisal by simplifying the procedure, particularly in the agricultural and MSME sectors. The platform’s standardised APIs and ‘plug and play’ architecture facilitate the integration of various data sources, resulting in faster credit availability without excessive paperwork.
Following the success of a pilot project in two states, the RBI intends to implement ULI nationwide. Das emphasised that, much as UPI altered digital payments, ULI is ready to revolutionise lending in India. The RBI is also exploring using UPI and ULI to facilitate cross-border transactions and remittances while resolving technological and governance challenges to assure global interoperability.
