In a keynote address at the Global Conference on Digital Public Infrastructure and Emerging Technologies, a part of the RBI@90 initiative in Bangalore, RBI Governor Shaktikanta Das named the pilot launched in 2023 as Unified Lending Interface (ULI), describing it as the next significant leap in India’s digital financial infrastructure.
Das emphasised the transformative nature of ULI, stating, “The Unified Lending Interface represents a revolutionary shift in how credit is appraised and delivered. Much like UPI has changed the landscape of digital payments, ULI will redefine the credit ecosystem.”
Key Features of ULI:
- Seamless Information Flow: “The ULI platform will enable a seamless flow of information, including records from various states,” Das explained. This will “cut down the time taken for credit appraisal,” particularly benefiting smaller and rural borrowers who face challenges with traditional credit processes.
- Standardised API: He highlighted that ULI’s architecture has a common and standardised API, designed to enhance digital access to information from diverse sources. This approach will ensure a more efficient and consistent credit evaluation process.
- Enhanced Access: ULI aims to reduce the need for extensive documentation and improve turnaround times, according to the Governor. This will be particularly advantageous for sectors such as agriculture and semi-urban areas, where access to credit has historically been limited.
Drawing a parallel between ULI and UPI, Das stated, “Just like UPI revolutionised the payment system in India, the Unified Lending Interface will be a revolutionary force in digital infrastructure.” “CBDC and UPI are making interoperability a reality,” he noted, while acknowledging that both ULI and CBDC are still in pilot modes, with no immediate rush to roll out CBDC system-wide.
The RBI governor positioned ULI alongside Jan Dhan and Aadhaar as part of a new “trinity” that will drive financial inclusion and efficiency.
The ULI joins the ‘Jam Trinity,’ which includes Jan Dhan (financial inclusion), Aadhaar (digital identity), and UPI (digital payments).
“The ULI will form a crucial part of this trinity, mirroring the transformative impact of UPI on digital payments,” the governor remarked.
