RBI to launch Unified Lending Interface to provide ‘frictionless credit’

MUMBAI: The Reserve Bank is piloting an application for frictionless credit —Unified Lending Interface (ULI). It will be launched nationwide soon and will become the UPI on the credit side, Governor Shaktikanta Das said.

The new technology is aimed at reducing the time taken for appraisal, especially for small borrowers in rural areas, he added.

“The Reserve Bank had last year started a tech platform for enabling frictionless credit. The central bank proposes to call it a Unified Lending Interface (ULI). The initiative is still in the pilot stage and will be launched in due course,” said Das, while delivering the keynote address at the Global Conference on Digital Public Infrastructure and Emerging Technologies, a part of the RBI@90 initiative in Bengaluru Monday.

“The ULI facilitates a seamless and consent-based flow of digital information, including land records from multiple data providers to lenders. It cuts down the time taken for credit appraisal, especially for rural and smaller borrowers and its architecture is designed for a plug-and-play approach to enable quicker access.

ULI improves digital access from diverse sources for lenders. The ecosystem is based on the consent of potential borrowers and data privacy is protected,” Das said.