“Continuing on this journey of digitalisation of banking services, last year we launched the pilot of a technology platform which enables frictionless credit.From now on, we propose to call it the ULI. Based on our experience from the pilot project, a nationwide launch of the ULI will be done in due course,” stated Das.
ULI permits seamless, consent-based digital info stream, together with land information from numerous sources to lenders, dashing up credit score appraisal for small companies and rural debtors. Its standardised, plug-and-play APIs simplify integration, decreasing the necessity for intensive documentation. ULI addresses unmet credit score demand, notably for agriculture and MSMEs, by digitising entry to monetary and non-financial knowledge.
“The ‘new trinity’ of JAM-UPI-ULI will be a revolutionary step forward in India’s digital infrastructure journey,” Das added.
Speaking at a worldwide convention on digital public infrastructure in Bengaluru, Das stated the programmability function of the central financial institution digital forex would allow last-mile inclusion. “It is important to emphasise that there should not be any rush to roll out system-wide CBDC before one acquires a comprehensive understanding of its impact on users, on monetary policy, on the financial system and on the economy.”
On cross-border funds the place UPI is starting to play a job, Das stated that India is glad to develop a plug-and-play system to allow interoperable cross-border funds. However, there could be a problem as nations would need to develop their very own programs. “We can overcome this challenge by developing a plug-and-play system which allows replicability while also maintaining the sovereignty of respective countries. India has made some progress in this direction and would be happy to develop a plug-and-play system for the benefit of the community of nations,” stated Das.
The governor stated that he anticipated all regulated entities to leverage AI however with warning. “Integrating this cutting-edge technology into a robust and responsible DPI presents an opportunity to amplify the capabilities and efficiency of DPI even further… However, such advancements come with serious challenges,” he stated. “AI is a data-driven science. The authenticity of data being used in training the models, possibility of biases, concerns of data privacy need to be carefully examined,” he added.
Besides the mushrooming of digital lenders, there was a number of public infrastructure developments in straight-through lending.
