RBI to Launch Unified Lending Interface: A Game-Changer for Rural Credit

The Reserve Bank of India, leveraging the success of digital financial services, is set to launch the Unified Lending Interface (ULI), designed to facilitate seamless credit flow to primarily rural borrowers. Initially piloted in two states, ULI aims to revolutionize digital credit provision, mirroring UPI’s impact on digital payments.

The Reserve Bank of India (RBI), buoyed by the success of digital financial services, is preparing to launch the Unified Lending Interface (ULI), a groundbreaking platform aimed at ensuring a frictionless flow of credit, particularly for small and rural borrowers.

Governor Shaktikanta Das announced during the RBI@90 Global Conference that this platform would provide seamless and consent-based digital information sharing from various data service providers to lenders. ULI, with its standardized APIs for easy integration, is expected to significantly cut credit appraisal times.

The initiative follows the successful pilot of the technology platform in two states. ULI targets to revolutionize credit provision much like the Unified Payments Interface (UPI) did for digital payments, promising quicker loan approvals and reduced documentation. It's anticipated to boost access to credit for sectors like agriculture and MSMEs.

(With inputs from agencies.)