The Reserve Bank of India’s Governor, Mr. Shaktikanta Das, on Monday made the announcement of a Unified Lending Interface (ULI).
What Exactly Is This Scheme?
ULI is a new scheme that the RBI plans on rolling out in India in due course of time. It has already been launched as a pilot program last year and has been successful. It is expected to revolutionize the entire credit landscape.
How Will It Benefit The People?
This new technology will crucially reduce the time it is taken by individuals and businesses to obtain loans. This is expected to be especially useful in rural areas which might not have the necessary infrastructure or information. It will enable access to frictionless credit and enhance the digital system even further.
How Will ULI Work?
This system will facilitate an uninterrupted and smooth flow of data and digital information from the data providers to the lending bodies or platforms. This entire exercise will be consent based, and will significantly speed up the traditional process. Data privacy has also received special focus and the borrower’s data will be kept safe.
How Will The Digital Landscape Change?
The digital landscape might see a significant change upon the successful rollout of this scheme. This policy is expected to make the financial system stronger and more customer friendly as well. The banking system might also undergo unprecedented changes with the advent of JAM-UPI-ULI.
Overall, with the expansion of the digital infrastructure, the economy is also expected to expand in the long-run. While the scheme is looked upon as a positive change, there are also threats of digital frauds and cyber crimes which must be kept in mind. The scheme as the Governor also suggested should be rolled out only after due research and planning.
