After the success of the Unified Payments Interface (UPI), the Reserve Bank of India (RBI) is preparing to launch the Unified Lending Interface (ULI). RBI Governor Shaktikanta Das announced this on Monday. The pilot project for ULI has been completed successfully, and the system will be launched at the right time based on this experience.
What is Unified Lending Interface (ULI)?
ULI will work similarly to UPI but will focus on providing loans. It will cater to crucial sectors like agriculture and MSMEs (Micro, Small, and Medium Enterprises). The system is designed to make loan processing faster and more efficient by using digital information.
How Will ULI Work?
Shaktikanta Das mentioned that ULI is expected to bring changes similar to those seen with UPI. The system will provide access to digital information based on a person’s consent, including land records and data from various sources. This will reduce the time needed to process loans, especially for people in rural and small areas.
Easier Loan Processing
The ULI system will use a ‘plug and play’ approach with standard APIs to access information from different sources. This approach will help fix technical issues and allow for quicker loan processing without long procedures.
Meeting MSME and Agriculture Needs
Das stated that by digitizing access to financial and non-financial information, ULI aims to address the large unmet demand for loans in sectors like agriculture and MSMEs. This will help in fulfilling the credit needs of these important sectors more effectively.
