On November 06, 2024, Deputy Governor of the Reserve Bank of India (RBI), Mr. T Rabi Sankar, introduced the Unified Lending Interface (ULI) at the Business Standard BFSI Summit in Mumbai. The ULI, a public-sector infrastructure project, aims to democratise access to lending for the private sector, like the way the Unified Payments Interface (UPI) has transformed digital payments. He described ULI as a platform where private entities can innovate within a structured regulatory framework, with ULI set to play a role in lending like UPI’s impact on payments. He also discussed India’s economic resilience amid potential fluctuations from the US election results, emphasising the country’s strong position to handle currency volatility and market fluctuations.
He also spoke about the future of UPI, highlighting efforts to expand its reach to feature phone users and offline environments and linking it with other countries for global acceptance. While UPI’s growth has not significantly impacted currency circulation, it has slowed the growth rate of physical currency. However, fraud cases associated with UPI transactions have risen, though the rate of fraud per transaction is stabilising. He stressed the importance of public awareness and digital hygiene in combating this issue. Addressing the impact of artificial intelligence (AI) in the financial sector, he advocated for a cautious, sandboxed approach to its implementation. He also clarified that while the RBI regulates fintech companies involved in lending, other fintech services require some oversight to ensure a balanced environment for growth. Lastly, he mentioned the RBI’s pilot project on Central Bank Digital Currency (CBDC) and its potential benefits for the future.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
