RBI introduces Unified Lending Interface for speedy credit access to rural, smaller borrowers

The Reserve Bank of India has introduced a technological platform called Unified Lending Interface (ULI) to strengthen the disbursal of credit, especially to rural and smaller borrowers.

“ULI is expected to cater to large unmet demand of credit for various sectors for agriculture and MSME borrowers,” governor Shaktikanta Das said on Monday.

"This platform facilitates a seamless flow of digital information, including land records of various states, from multiple data service providers to lenders.

This cuts down the time taken for credit appraisals, especially for smaller and rural borrowers.”

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The RBI initiated a pilot program last year in the form of a public tech platform to simplify access to credit.

The program aimed to provide digital information to lenders, facilitating the process of obtaining credit or loans in just a few minutes.

"Just like the Unified Payments Interface (UPI) changed the payments ecosystem, similarly we expect ULI to transform the lending landscape," the governor said.

This is part of the central bank’s digitalization of banking services, Das said while addressing the Global Conference on Digital Public Infrastructure and Emerging Technologies in Bengaluru. "The new platform is also based on the consent of potential borrowers and data privacy fully is protected."

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“New trinity -- JAM, UPI and ULI, Central Bank Digital Currency (CBDC) to be rolled out gradually, is a revolutionary step in India’s Digital Public Infrastructure journey,” he said. “This initiative reduces the complexity of multiple technical integration, enables borrowers to get the benefit of seamless delivery of credit, quicker turnaround time without requiring extensive documentation,” he added.

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