UNIFIED LENDING INTERFACE TRANSFORMING THE LENDING LANDSCAPE

The country has made notable progress in financial inclusion, as evidenced by the increase in its Financial Inclusion Index and the establishment of millions of Jan Dhan bank accounts, particularly in rural areas. The rapid expansion of digital lending platforms, along with advancements in public infrastructure, has enhanced the accessibility of streamlined lending processes. These developments support the Reserve Bank of India's objectives to facilitate easier access to financial services, particularly for underserved communities. Digital lending, primarily offered by banks and non-banking financial companies (NBFCs), mainly consists of unsecured consumer loans, along with secured consumer loans from banks and high-value loans from NBFCs. The loans disbursed through digital channels by NBFCs has risen significantly and this growth is influenced by factors on both the supply and demand sides, such as initiatives for financial inclusion, increased smartphone and internet access, better socioeconomic conditions, and supportive regulatory environments. The Unified Lending Interface (ULI), launched by the Reserve Bank of India (RBI), is set to transform India's lending landscape by consolidating various lending services into a unified digital platform. This article analyses the journey from UPI to ULI.