Breaking: RBI’s Game-Changing ULI System Set to Boost Speedy Lending for MSMEs & Farmers Nationwide
RBI to Launch Unified Lending Interface to Transform Credit Access
Bengaluru, Aug 26 (IANS): The Reserve Bank of India (RBI) is set to introduce a nationwide Unified Lending Interface (ULI), akin to the Unified Payments Interface (UPI), aimed at bolstering credit access across various economic sectors, particularly for agricultural and MSME borrowers. Announcing the initiative on Monday at a global conference, RBI Governor Shaktikanta Das highlighted the success of a pilot project, paving the way for a broader rollout.
“Much like UPI revolutionized payments, we anticipate ULI to significantly transform the lending ecosystem in India. This ‘new trinity’ of JAM-UPI-ULI marks a monumental leap in digital infrastructure,” said Das. The ULI system, featuring standardized APIs and a ‘plug and play’ approach, ensures streamlined access to diverse information sources, cutting down on extensive documentation and easing credit appraisal for small and rural borrowers.
He detailed how the ULI platform facilitates a seamless, consent-based flow of digital information, including land records, from various data providers to lenders, thereby expediting credit processing. This initiative is expected to fill the large unmet credit demand, particularly benefiting agriculture and MSME sectors.
Governor Das also underscored India’s unique Digital Public Infrastructure (DPI) journey, where the base technical infrastructure is public sector operated, but accessible to private entities for innovative service creation. The JAM trinity—comprising Jan Dhan Accounts, Aadhar, and Mobile Phones—has laid the DPI foundation, with notable inclusivity: over 67% of JAM beneficiaries are from rural areas and 55% are women.
Das cited the Account Aggregator (AA) framework as another DPI example, enabling secure, consent-based financial information sharing to facilitate cash flow-based financing for MSMEs.
On the topic of Central Bank Digital Currency (CBDC), which entered pilot phases in late 2022, Das highlighted its potential while advocating for a cautious and gradual rollout to fully understand its implications. The retail pilot boasts over 5 million users and explores functionalities beyond payments, emphasizing financial inclusion.
Original Story https://www.morungexpress.com/rbi-poised-to-launch-nationwide-uli-system-to-speed-up-lending-to-msmes-farm-sector
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