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The Reserve Bank of India (RBI) is set to introduce a groundbreaking technology platform designed to facilitate frictionless credit access, particularly for small- to medium-sized businesses (SMBs).
The platform, named the “Unified Lending Interface (ULI),” was piloted by the RBI in 2023, and the central bank plans to roll it out nationwide in the near future, according to a press release issued on Monday (Aug. 26). RBI Governor Shaktikanta Das highlighted the platform’s potential during his inaugural address at the RBI@90 Global Conference.
“The ULI platform enables a seamless, consent-based flow of digital information, including land records from various states, from multiple data service providers to lenders,” Das stated. He emphasized that this innovation significantly reduces the time required for credit appraisals, particularly benefiting smaller and rural borrowers.
Das further explained that the ULI is built on a standardized API architecture, designed for a “plug-and-play” approach. This allows lenders easy access to diverse information sources, enabling borrowers to obtain credit more quickly and without the need for extensive documentation.
“In essence, by digitizing access to both financial and non-financial data, which previously existed in isolated silos, ULI is expected to meet the substantial unmet demand for credit across various sectors, especially among agricultural and SMB borrowers,” Das noted.
The RBI initially launched the pilot project for this platform in August 2023, referring to it as a “Public Tech Platform for Frictionless Credit.” The goal was to streamline the lending process by integrating disconnected systems that previously hindered timely credit delivery.
“With the rapid advancement of digitalization, India has embraced digital public infrastructure, encouraging banks, non-banking financial companies (NBFCs), FinTechs, and startups to create innovative solutions in payments, credit, and other financial activities,” the RBI stated during the pilot launch.
India continues to lead in mobile payments innovation, as evidenced by the PYMNTS Intelligence report “2023 Global Digital Shopping Index.” The report revealed that 79% of consumers in India used a digital wallet, powered by the Unified Payments Interface (UPI), for their most recent retail purchase, underscoring the country’s leadership in digital financial services.
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