North India Statesman
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What is Uli System: If you have ever taken a loan from a bank or NBFC, then this news is of your use. You must have seen that along with loan application, the credit score of the applicant is also checked. Credit score is also called CIBIL score. Many times a loan is not available when the CIBIL score is low. Even if found, the interest rate is high. But now the dependence on CIBIL score is going to end in the coming time. Yes.
According to the news published in Dainik Jagran, all financial institutions have been asked to appoint a nodal officer for the use of ULI. Apart from this, ULI’s MD and CEO of banks also monthly
Has been asked to review. In this context, a meeting was held under the chairmanship of DFS Secretary M. Nagaraju and RBI Deputy Governor T. Ravi Shankar. Representatives of 12 government banks, 18 private banks, three small finance banks and six NBFCs were present during this period. Out of CIBIL, let us tell you about ULI, which is currently being discussed.
What is Unified Lending Interface (Uli)?
Uli is a government technical platform designed to make the debt process simple and faster. Its purpose is to reduce costs, provide rapid loans and make this facility available on a large scale. This platform will easily provide digital information from various states to lender banks and NBFCs, including land records, including land records. It is designed to provide loans without any hassle. This will reduce the time taken in loan evaluation. This will benefit the people living in the villages more.
What are the benefits of ULI?
In August 2024, the then RBI Governor Shaktikanta Das said that ULI would meet the incomplete demand of borrowers of various fields, especially agricultural and MSME sectors. According to an ANI report, Das said that the way UPI has changed the payment system, similarly in the coming times, ULI is expected to play an important role in credit sector banking and NBFC in the country. He said that JAM-UPI-ULI’s ‘New Trimurti’ will prove to be an important step in the country’s digital infrastructure journey.
How will ULI work?
The then RBI Governor said that ULI would have a general and standardized API application programming interface. These are designed in a plug and play manner. This means that it will make digital access to information from various sources easier. This platform will reduce the troubles of many technical integrations. It will also help in providing financial and non-financial data from banks and NBFCs. ULI can collect data of houses, shops, fields, daily expenses, shopping and spending ability to apply for loan.
When was CIBIL launched?
The ULI framework will also be connected to e-commerce and gig workers platforms. This will make it possible to prepare a credit score for small buyers and shopkeepers as well as all gig workers. Credit Information Bureau India Limited CIBIL was started 25 years ago to measure the current credit score.
Currently, CIBIL score information is available only to banks and credit card users from banks and NBFCs only. This will be the first time that information about the CIBIL score of the borrowers for the first time will also be available.
