RBI's new credit system: How it will help small borrowers
The RBI is rolling out a digital, data-driven credit system to make borrowing easier and fairer—especially for small businesses, gig workers, and people outside the formal banking world.
Announced in its July bulletin, this move shifts lending away from old-school collateral rules to smarter use of your financial data.
How the new system works
Platforms like Account Aggregator let you securely share your financial info with lenders when you want.
The Unified Ledger Interface (ULI) connects rural banks and borrower data, while OCEN helps match borrowers with lenders using cash flow—not just assets—to decide on loans.
Benefits of the new system
This shift could mean more people—like women entrepreneurs or folks in rural areas—get access to credit that was out of reach before.
It may also lower borrowing costs and support new types of finance apps.
But as lending goes digital, the RBI says strong rules around data privacy are key to keeping things safe and fair for everyone.