Unified Lending Interface: RBI Reviews Slow Adoption
Why in the news
The RBI and the Department of Financial Services (DFS) quizzed lenders on why the Unified Lending Interface is scaling slowly.
About ULI
- A public digital platform often called UPI for loans.
- Combines financial, non-financial and alternative datasets, such as land records, property data and satellite insights, for quick, verified credit decisions.
Adoption hurdles
| Issue | Detail |
|---|---|
| Integration | Lenders with own tech stacks treat ULI as low priority |
| Scrutiny | Early push in small personal loans met RBI concern about delinquencies |
| Caution | Reluctance in unsecured credit |
| Use cases | Supply chain finance trials failed to gain traction |
Way forward
- RBI Deputy Governor T. Rabi Sankar and DFS Secretary M. Nagaraju are consulting stakeholders.
- Develop use cases like agri-credit, MSME lending or gold loans.
- Possibly refine regulation and add incentives for lenders.
Exam angle
- Nickname: UPI for loans; review led by RBI with DFS.