Page 31 - Banking Finance May 2025

ARTICLE

Unified Lending

Interface (ULI) and Its

Future in RBI's New

Trinity: JAM, UPI, and

Sumit Roy
ULI Chief Manager Faculty (ULA-DT),

Union Bank of India,
Union Learning Academy
Powai, Mumbai

While JAM focuses on financial inclusion and UPI has revolutionized digital payments, the Unified
Lending Interface (ULI) is poised to play a critical role in democratizing access to credit. Together,
this trinity promises to not only bridge the gaps in the financial system but also empower individuals
and businesses to thrive in the digital economy.

I ndia's financial ecosystem is undergoing a digital ULI acts as a centralized system that simplifies the process

of applying for loans and assessing creditworthiness by
revolution, with the Reserve Bank of India (RBI) leading
the charge by creating a new trinity of financial
inclusion and digitization. This trinity JAM (Jan Dhan, leveraging data from various digital sources. The goal is to
democratize credit access, especially for underserved
Aadhaar, Mobile), UPI (Unified Payments Interface), and the segments like small businesses, farmers, and individuals
recently conceptualized ULI (Unified Lending Interface) without traditional credit histories.
represents a comprehensive and forward-thinking approach
to transforming the financial landscape of India. ULI can be thought of as the "UPI of lending," where just as
UPI brought about a revolution in digital payments, ULI is
While JAM focuses on financial inclusion and UPI has expected to do the same for lending by making it seamless,
revolutionized digital payments, the Unified Lending transparent, and accessible for all.
Interface (ULI) is poised to play a critical role in
democratizing access to credit. Together, this trinity Key Components of the New Trinity
promises to not only bridge the gaps in the financial system 1. JAM (Jan Dhan, Aadhaar, Mobile)
but also empower individuals and businesses to thrive in the The JAM trinity comprising Jan Dhan bank accounts,
digital economy. Aadhaar, and mobile connectivity has laid the
groundwork for financial inclusion across India. It provides
What is Unified Lending Interface (ULI)? individuals with access to formal banking services,
including savings accounts, direct benefit transfers (DBTs),
The Unified Lending Interface (ULI) is a digital platform that
and digital identity verification through Aadhaar.
aims to streamline the lending process by integrating lenders
(banks, non-banking financial companies, fintech's) and By bringing millions of unbanked individuals into the
borrowers (individuals and businesses) on a single platform. formal financial system, JAM has enabled greater

28 | 2025 | MAY | BANKING FINANCE