RBI to launch Unified Lending Interface :The Reserve Bank of India is preparing to introduce ULI on the lines of UPI. After the introduction of ULI, people will be able to get loans with just one click. The country’s central bank RBI is introducing ULI so that people in small and rural areas can easily get loan facilities.
What is ULI?
The trend of digital transactions has increased rapidly in the country. People have adopted it. This has encouraged banks, NBFCs, fintech companies and start-ups to invent new ways for payments, loans and other financial activities.
Necessary documents are required to provide loan facility to people digitally. This data is used in credit appraisal and this data is available with various organizations like central and state governments, account aggregators, banks, credit information companies and digital identity authorities. Since these data sets are with different organizations, there have been problems in issuing loans to people digitally in a short time. RBI is preparing to introduce ULI on the lines of UPI so that people can get loan at a click.
Encouraged by the success of digitization of financial services in the country and the world, the Reserve Bank of India is going to introduce Unified Lending Interface (ULI) to simplify loan disbursal, especially for small and rural people. Last year, the Reserve Bank started a pilot project of the platform enabling easy loans in 2 states. RBI Governor Shaktikanta Das said at an event in Bengaluru on Monday that from now on we propose to name this platform as Unified Lending Interface (ULI).
The platform facilitates seamless and consent-based flow of digital information, including land records of various states, from multiple data service providers to borrowers. This will reduce the time taken for credit assessment, especially for small and rural borrowers
