Q. With reference to the Unified Lending Interface (ULI) tech platform, consider the following statements:
1.It aims to simplify and speed up the credit appraisal process by enabling a seamless flow of digital information.
2.It is designed to cater to the large unmet demand for credit in the real estate and e-commerce sectors.
3.It operates on a consent-based model.
4.The platform has been developed by the National Payments Corporation of India (NPCI).
Which of the statement(s) given above is/are correct?
Explanations –
Statements 1 and 3 are correct. The ULI is designed to streamline and accelerate the credit appraisal process by facilitating a seamless and consent-based flow of digital information. ULI operates on a consent-based model, ensuring that borrowers’ data privacy is maintained while facilitating the flow of digital information. ULI is anticipated to have a transformative impact on the lending sector, akin to the impact UPI had on the payments ecosystem in India.
Statements 2 and 4 are incorrect. ULI is designed to cater to the large unmet demand for credit in the agricultural and micro, small, and medium enterprises (MSME) sectors, particularly benefiting small and rural borrowers. The ULI has been developed by the Reserve Bank of India (RBI). ULI will consolidate data from sources like Aadhaar e-KYC, land records, and account aggregators, using a standardized API to facilitate quicker credit appraisals.
Source: AIR
