The Reserve Bank of India (RBI) has announced the introduction of ULI (Unified Lending Interface) on the lines of UPI. Through this, loans can be given to people in a very short time. This will be of great benefit to those who take loans of small amounts, especially small businessmen and enterprises. RBI Governor Shaktikanta Das gave this information on Monday.
He told in a program organized here that RBI has started its latest technological initiative ULI pilot project. It will soon be implemented across the country. This initiative has been started by the central bank with the aim of making the process of providing loans more smooth and fast. Earlier, the Reserve Bank had started a pilot project of a technology platform enabling easy loans in two states. At that time the name of this scheme was FCP (Frictionless Credit Platform). Now its name has been changed to ULI.
Small villages and towns will benefit
The biggest beneficiaries of ULI will be the small villages, towns and small-medium enterprises of the country. It has been developed on the lines of UPI. With its help, banks and non-banking financial companies will find it easy to give loans. Any institution can easily adopt it. Just like UPI changed the way of payment, ULI can also bring a significant change in the process of giving loans.
All information will be available on this platform
The ULI platform will have all the necessary digital information including land records of the customers taking loan. This will provide all the necessary information to the loan giving institutions at one place. This will reduce both the time and paperwork required in the loan issuance process. ULI will provide loan to the customers without any documentation. This will make it easier for farmers and small employed people to take loan.
This is how ULI will work
This platform has been developed on the lines of UPI. Just like online payment apps are based on the UPI system, RBI approved loan apps will be on ULI. Customers will apply for a loan here. Their bank account will be linked to it. Once the loan is approved, a security pin will have to be entered on the app, after which the loan amount will be credited to the account.
Will make the financial sector more secure: Das
In the program, Shaktikanta Das also said that RBI is working towards making the financial sector more secure. RBI plans to completely eliminate fraud in this sector. Das said that we are constantly working on creating policies, approaches, systems and platforms that will make our financial sector more robust, dynamic and customer-centric.
On the subject of Digital Public Infrastructure (DPI) and emerging technologies, he said that the traditional banking system has undergone an unprecedented technological transformation in the last decade. All indications suggest that this process may accelerate even further in the coming years.