RBI to Launch Unified Lending Interface

On 26th August, 2024, the Reserve Bank of India (RBI) announced that it is set to introduce the Unified Lending Interface (ULI), a transformative platform aimed at revolutionizing the lending ecosystem in the country, similar to the impact of the Unified Payments Interface (UPI) on payments.

The Unified Lending Interface (ULI) will streamline the lending process, enabling the seamless and consent-based flow of digital information from multiple data providers to lenders.
The ULI will integrate various records, including PAN, Aadhaar, previous lending history, income and credit records, and land records, facilitating quicker and more efficient credit appraisal.
The ULI is expected to reduce the complexity and time associated with obtaining credit, particularly benefiting smaller and rural borrowers.
Like UPI, the ULI will be user-friendly, aiming to simplify the process of credit delivery with minimal documentation requirements.
A nationwide launch of ULI is anticipated, building on the success of the pilot project, with the goal of meeting the significant demand for credit across various sectors, especially in agriculture and MSMEs.
The RBI Governor emphasized that the 'new trinity' of JAM (Jan Dhan, Aadhaar, Mobile)-UPI-ULI will mark a significant advancement in India's digital infrastructure.