ULI 'turning point' in providing affordable credit: RBI deputy governor

Upcoming digital platform has the potential to achieve transformative impact of UPI, says Swaminathan J

The Unified Lending Interface (ULI) marks a “turning point” in providing affordable credit at scale in the country, said Swaminathan J, deputy governor at Reserve Bank of India, on Wednesday, comparing the upcoming platform to the success of the Unified Payments Interface (UPI).

 

ULI was launched in August 2024 to connect borrowers, lenders and digital loan service providers to create a digital lending platform that will reduce the time for appraisals, especially for smaller borrowers in rural areas, and simplify multiple technical integrations.

 

“India is developing the Unified Lending Interface, which seeks to bring the same principles of openness and interoperability to credit markets. Just as UPI made payments universal, ULI has the potential to mark a turning point in how affordable credit is accessed and delivered at scale,” Swaminathan said in Mumbai. 

  UPI revolutionised retail payments by integrating multiple accounts into a single mobile platform. “While UPI has rightly captured global attention, it represents only the most visible part of a much wider transformation. Behind it stands a comprehensive digital payments ecosystem that includes NEFT and RTGS for retail and high-value transfers, the Bharat Bill Payment System for interoperable bill payments, the Aadhaar Enabled Payment System for last-mile inclusion through micro-ATMs, and BharatQR for merchant acceptance,” he said, adding that these systems together form a layered, resilient, and inclusive architecture.

 

“They ensure that digital transactions are not only fast and convenient but also secure, accessible, and trusted—cornerstones of India’s transition from a predominantly cash economy to a thriving digital one.”

 

Swaminathan warned that while the rise of fintechs, digital platforms and embedded finance models has expanded the financial system’s reach, it has created new risks.

 

“These are not simply traditional risks in digital form, but new frontiers arising from algorithmic decision-making, heavy dependence on data, concentration of services in a few platforms, and deep technological interconnections. Left unmanaged, such risks can quickly migrate from individual institutions to the broader system.”

 

“This is why we encourage financial institutions to move to a proactive resilience mindset, embedding digital risk awareness and safeguards into their governance frameworks. Innovation and safety are not opposing goals; when balanced well, they reinforce each other and build lasting trust,” Swaminathan said.