If you are already influenced by Unified Payments Interface (UPI), get ready for Unified Lending Interface (ULI) that would transform India’s lending sector, Reserve bank of India (RBI) governor Shaktikanta Das said on August 27. The system consists of lenders accessing the financial and non-financial data of a customer – subject to his/her consent – for the common man, especially farmers and tiny, small and medium businesses.
What the RBI guv said
“Continuing on this journey of digitalisation of banking services, last year we launched the pilot of a technology platform that enables frictionless credit. From now on, we propose to call it the ULI,” the RBI governor revealed at the Global Conference on Digital Public Infrastructure and Emerging Technologies. He described it as a ‘new trinity’ of JAM-UPI-ULI and it will help the country’s digital infrastructure journey to leapfrog into the future.
Unified Payments Interface (UPI) Benefits
Once ULI is implemented, the applicants will be saved the trouble and time for extensive documentation to appeal for a loan. All the information will be available at the fingertips of lenders all the time. Needless to emphasise, it will enable speedy decision on loan applications.
Similar to JAM
By the way, JAM is an acronym of Jan Dhan, Aadhaar, and mobile. The new architecture being put together by the RBI will make borrowing seamless and smooth. The customer will benefit from less friction in the sanctioning process.
Way forward for RBI
RBI’s efforts will be to digitise the financial and non-financial data of individuals so that lenders can have a comprehensive picture of the loanee. It will obviously help a lending institution to arrive at the creditworthiness of an individual quickly. All these information are now available for some sections of the people and they are stored in silos.
Agriculture, MSME to benefit hugely
The RBI governor, who is the boss of the regulatory mechanism of all the institutional credit that takes place in this country, said ULI will help expand credit facilities to the MSME and the agriculture sector where a lot of unsatiated hunger credit exists.
Unified Lending Interface or ULI will revolutionise the lending experience both for the lender as well as for the borrower, the RBI governor said. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
