RBI announces Unified Lending Interface for seamless credit access
What's the story
Reserve Bank of India (RBI) Governor Shaktikanta Das, has announced a new technological platform called the Unified Lending Interface (ULI).
The ULI is currently in its pilot phase and aims to streamline the credit process by reducing appraisal time, particularly for rural and small-scale borrowers.
Das made this announcement at the Global Conference on DPI and Emerging Technologies in Bengaluru.
Platform potential
A game-changer for India's lending landscape
Das highlighted the potential of ULI to revolutionize India's lending landscape, drawing parallels with the impact of Unified Payments Interface (UPI) on the payments ecosystem.
He stated, "Just like the UPI changed the payments ecosystem, similarly we expect ULI to transform the lending landscape."
The governor also emphasized that this initiative is part of RBI's broader strategy to digitalize banking services.
Credit facilitation
ULI to simplify credit access for rural, small borrowers
The ULI is designed to enable a smooth flow of digital information from various data providers to lenders, including land records.
Das explained that the platform's architecture allows for a plug-and-play approach. This ensures a quicker access to information from diverse sources which are needed for the loan approval.
Privacy protection
ULI ensures data privacy and simplifies technical integrations
Das assured that the new platform operates with the consent of potential borrowers and fully safeguards data privacy.
He also noted that it simplifies multiple technical integrations, enabling borrowers to receive credit seamlessly with minimal documentation.
This feature is expected to expedite the loan approval process and improve the overall borrowing experience.
Digital revolution
RBI proposes new trinity for India's digital public infrastructure
Das proposed a new trinity for India's Digital Public Infrastructure (DPI) - Jan Dhan-Aadhaar-Mobile (JAM), UPI, and ULI.
He described this as a revolutionary step in India's DPI journey.
The governor also revealed that the central bank is working on merging UPI with Central Bank Digital Currency (CBDC), to streamline payments and further boost financial inclusion.