Centre and RBI Join Forces to Scale Unified Lending Interface for Credit Reform

Deputy Governor T. Rabi Sankar reinforced the Reserve Bank’s commitment to advancing innovation in the lending sector.

In a landmark move to redefine India’s digital credit landscape, the Department of Financial Services (DFS), Ministry of Finance, convened a high-level meeting in New Delhi to discuss the nationwide scale-up of the Unified Lending Interface (ULI)—a Digital Public Infrastructure (DPI) initiative poised to transform credit delivery across the country. The session was co-chaired by Shri M. Nagaraju, Secretary, DFS, and Shri T. Rabi Sankar, Deputy Governor, Reserve Bank of India (RBI), and saw participation from senior officials across central ministries, state governments, the RBI, and the Reserve Bank Innovation Hub.

ULI: India’s Next Digital Revolution After UPI

In his address, Secretary M. Nagaraju likened the potential of the Unified Lending Interface to that of the Unified Payments Interface (UPI)—the breakthrough financial innovation that democratized digital payments. He emphasized that ULI aims to unlock similar transformational impact in the credit domain by enabling frictionless, fast, and inclusive lending.

“ULI is not just another scheme; it’s a national infrastructure for credit,” Nagaraju said. “With the power of trusted, high-value datasets from various government bodies—central and state—ULI can become the backbone of a seamless, borrower-friendly credit ecosystem that leaves no citizen behind.”

The initiative is a key pillar in the Government’s broader push for digital empowerment, financial inclusion, and last-mile service delivery, particularly to underserved individuals and micro-entrepreneurs in rural and semi-urban regions.

RBI’s Call for Collaboration and Innovation

Deputy Governor T. Rabi Sankar reinforced the Reserve Bank’s commitment to advancing innovation in the lending sector. While thanking DFS for organizing the strategic dialogue, he urged all stakeholders to view the platform as collaborative infrastructure, not just a technology stack.

“ULI is the next big step in India’s Digital Public Infrastructure journey,” he said. “We must work together—not in silos—to integrate as many government-held datasets as possible. Only then can we fully realize its potential to simplify, expedite, and personalize credit delivery for every Indian.”

He added that ULI, if implemented with vision and urgency, could surpass even the transformative impact of UPI—a statement that resonated with the participants and underlined the scale of the opportunity.

Strategic Priorities: Building a Unified Lending Ecosystem

The meeting concluded with a broad consensus on several key action points to accelerate ULI’s development and deployment:

• Digital Integration of Government Datasets: Ministries and state departments will work to integrate their high-value datasets (land records, income data, utility history, etc.) into the ULI framework to enable lenders to make more informed and inclusive credit decisions.

• Appointment of Nodal Officers: Each participating ministry and state department will appoint nodal officers to ensure smooth coordination and speedy execution of integration tasks.

• Digitization of Land and Asset Records: State governments have been asked to prioritize the digitization and systematization of land ownership, tenancy, and property records—critical datasets for assessing the creditworthiness of rural borrowers.

• Harmonization of Lending Schemes: Existing government-run credit delivery initiatives will be aligned with ULI to avoid duplication, reduce fragmentation, and foster a unified lending ecosystem with ULI as its core infrastructure.

ULI’s Broader Impact: Enabling Data-Driven, Trust-Based Lending

The implementation of ULI is expected to lead to the creation of credit rails that are secure, consent-based, and scalable. By embedding policy frameworks and analytics into lending workflows, the interface will allow lenders—from traditional banks to fintech platforms—to seamlessly process loan requests, assess risk, and disburse credit even to those outside the formal credit footprint.

Key benefits include:

• Reduced Turnaround Time: Instant verification of borrower data through digitally accessible public records.

• Improved Access for MSMEs and Farmers: Inclusion of land, crop, and business data to open up credit channels for previously underserved communities.

• Risk-Based Pricing: Use of alternate data points to better assess repayment capacity, enabling more accurate loan pricing and risk assessment.

• Increased Competition and Innovation: A level playing field for non-banking lenders, fintechs, and microfinance institutions, which can now plug into the same data streams and credit protocols.

A National Credit Infrastructure for the Future

The government and RBI envision ULI as a long-term national utility—akin to UPI and Aadhaar—that catalyzes equitable growth by reducing information asymmetry and lowering credit barriers. As India works toward achieving financial inclusion goals outlined in the Digital India and Viksit Bharat 2047 visions, ULI stands out as a transformative initiative with the power to unlock economic potential at the grassroots.

Shri Nagaraju concluded the meeting by emphasizing the urgency of action: “India cannot afford to wait. The time to digitize and democratize credit is now.”

The Unified Lending Interface, with its promise of credit as a service, is now on a fast-track path—powered by multi-level coordination, robust technology, and a shared national vision.