The Reserve Bank of India (RBI) has launched a new platform, the Unified Lending Interface (ULI), designed to simplify and expedite the process of securing loans, especially for rural and small-scale borrowers. This initiative aims to address the delays and challenges often faced by these groups in obtaining financial assistance.
Enhancing Loan Processing
RBI Governor Shaktikanta Das announced the ULI, emphasising that it will help meet the significant and currently unmet demand for credit in key sectors like agriculture and micro, small, and medium enterprises (MSMEs). “ULI will streamline the flow of digital information, such as land records from various states, directly to lenders. This will reduce the time needed for credit appraisals, particularly for smaller and rural borrowers,” Das stated.
Nationwide Rollout
The ULI will soon be available across the country, extending its benefits to a broader audience. The RBI previously tested the platform through a pilot program, which demonstrated its capability to process loans within minutes by providing lenders with essential digital information.
Comparison to UPI
Governor Das likened ULI to the Unified Payments Interface (UPI), which has revolutionised India’s payments landscape. He expressed optimism that ULI will similarly transform the lending sector, enhancing efficiency and accessibility.
Part of RBI’s Digital Push
The introduction of ULI is a key component of the RBI’s broader digital banking strategy. During the Global Conference on Digital Public Infrastructure and Emerging Technologies in Bengaluru, Das highlighted that ULI ensures data privacy through borrower consent, aligning with the RBI’s commitment to secure digital banking.
New Digital Trinity
Das also presented a new digital framework, combining the existing “JAM” trinity (Jan Dhan Accounts, Aadhaar, and Mobile Phones) with UPI and ULI, along with the upcoming Central Bank Digital Currency (CBDC). This integration aims to reduce technical complexities and enhance the speed of credit access.
Impact on Agriculture and MSMEs
By simplifying the credit appraisal process, the RBI expects ULI to significantly support the growth of agriculture and MSMEs. The platform’s streamlined approach promises quicker access to credit with minimal documentation, benefiting borrowers across India.
