Latest news with #UnifiedLendingInterface
Time of India
10-06-2025
- Business
- Time of India
Mis-selling: RBI looks at tighter rules
RBI Deputy Governor M. Rajeshwar Rao MUMBAI: RBI may introduce tighter regulations to curb mis-selling of financial products, especially in cases where customer suitability and appropriateness are overlooked. "It is concerning that such mis-selling without regard to suitability and appropriateness would beget distrust in schemes aimed at providing a safety net," said RBI deputy governor Rajeshwar Rao, cautioning that such practices could weaken trust in the formal financial system. To address this, the central bank is considering enhanced disclosure norms, stricter product suitability frameworks, and mandatory audits of sales processes followed by regulated entities. Rao said regulated entities need to "analyse the gaps and strengthen their processes to reverse the trend". Speaking at a financial inclusion forum recently, Rao said access to finance should not be treated as charity but as a strategic necessity. "Financial inclusion should not be viewed as an act of philanthropy, but rather as a strategic investment in the nation's economic and social development," he said. "Even lenders having access to low-cost funds have been charging margins higher than the rest of the industry and which in several instances appear to be excessive," said Rao RBI is also examining the possibility of mandating product suitability assessments, especially when dealing with vulnerable or first-time users. "It is important that products meant for vulnerable sections are not sold with a 'one-size-fits-all' approach," Rao said. He added that financial inclusion should not compromise appropriateness. The surge in consumer complaints, which rose 33% year-on-year, has prompted RBI to consider strengthening grievance redress mechanisms. Rao pointed to the increase in complaints received by the ombudsman and said this called for "better complaint handling mechanisms, possibly with time-bound resolution and automated complaint tracking." He indicated that penalties may be introduced for non-compliance with revised grievance norms. On the tech front, RBI may update its guidelines to regulate the use of AI, ML, and blockchain in financial services. Rao said responsible innovation must be guided by principles of fairness, transparency, and data protection. The proposed Unified Lending Interface is expected to move closer to implementation. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
29-05-2025
- Business
- Time of India
RBI to review digital banking regulations, expand lending interface and CBDC pilots
The Reserve Bank of India (RBI) is set to overhaul internet and mobile banking regulations and broaden the Unified Lending Interface (ULI) with new features. The central bank is also developing a framework for digital channel resilience and expanding Central Bank Digital Currency (CBDC) pilots. Furthermore, the RBI will establish AI ethics guidelines and bolster cybersecurity measures across regulated entities. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Reserve Bank of India RBI ) has announced plans to review the regulatory framework governing internet and mobile banking as part of its agenda for the new year, outlined in its latest annual central bank will also broaden the scope of the Unified Lending Interface (ULI) by including additional loan products and lenders. A new business-to-customer (B2C) functionality will be introduced on the ULI platform, which currently hosts 44 lenders—including banks and non-banking financial companies (NBFCs)—offering over 60 data services across 12 loan categories, such as Kisan Credit Card (KCC) loans, digital cattle loans, and MSME loans.'Building on stakeholder feedback and positive outcomes, we are expanding the platform's reach to incorporate more products, data providers, and lenders,' the RBI addition, the RBI is developing a framework focused on operational resilience for digital channels used by banks and non-banks. It also aims to extend the scope of Central Bank Digital Currency ( CBDC ) pilots in both retail and wholesale segments by introducing new use cases and technological RBI is actively exploring cross-border CBDC pilots, both bilateral and multilateral, to address challenges related to transaction turnaround times, efficiency, and the regulator plans to establish guidelines for the ethical adoption of artificial intelligence (AI) in the financial sector and expand the MuleHunter initiative—an AI/ML-based solution designed to identify suspicious mule the growing importance of digital security, the RBI is working on guidelines for digital forensic readiness and will conduct comprehensive thematic reviews on cyber risks across all regulated entities. The central bank also plans to enhance cyber risk mapping and organize phased, cross-sectoral cyber crisis simulation exercises
Time of India
13-05-2025
- Business
- Time of India
Unified Lending Interface : From Genesis to Scale
India's digital transformation continues to redefine the global technology landscape. Following the resounding success of UPI, Unified Lending Interface (ULI) has emerged as the next beacon of India's Digital Public Infrastructure (DPI), under India's 'Atmanirbhar Bharat' given by Hon'ble Prime Minister Narendra Modi, ULI aspires to become the definitive API-based ecosystem enabling frictionless credit access to Billion IndiansThis article offers an architect's inside perspective-capturing the design philosophy, engineering rigor, and real-world scaling of ULI from its inception to national rollout. Genesis: Audacity Meets Possibility The genesis of ULI was built on a singular, audacious question: "Is it possible to engineer a national-scale frictionless lending eco-system enablement platform within the planned timeframe?" The challenge united an exceptional consortium-RBIH veterans with Aadhaar experience, fintech specialists, cloud architects, and technology scholars-converging to design what was initially termed the Integrated Public Tech Platform for Frictionless Credit (IPTPF), then became Public Tech Platform for Frictionless Credit (PTPFC), which has been mentioned in various speeches introducing and propagating, the ULI platform by, then RBI Governor Honourable Shri. Shaktikanta Das Ji. The blueprint anchored itself on three pillars: API Marketplace: A comprehensive catalog of digital services for lendersService Consumers: Lending institutions (Scheduled Banks, SFBs, NBFCs, RRB, UCB, DCCBs/PACS)Service Providers: Digital data service providers Meticulous architectural reviews, conducted by the Technology Advisory Group (TAG), ensured every blueprint decision prioritized scalability, security, and reliability. From these foundations, the first line of code was committed-birthing what is now ULI. Applicability: A Complete Greenfield design approach with 'Open Architecture' at its heart. ULI was purposefully designed for modular adoption. Institutions could either integrate their entire Loan Origination System (LOS) with ULI or selectively onboard specific services to optimize costs and system resilience. Key architectural decisions include: Heavy lifting by ULI: Complex integrations and non-standard data normalizations are abstracted by ULI, offering a simple API interface to API Gateway Design: Enables seamless handling of both synchronous and asynchronous transactions with full telemetry Framework: Service providers can independently onboard after adhering to rigorous checklists, accelerating ecosystem Blind Principle: ULI does not retain data-ensuring trust and democratized access across security and privacy: A key consideration ensuring security and privacy of Data at both Rest & Transit. Hence by design compliant to the evolving DPDPA This architecture empowers lenders of all sizes to access best-in-class services without compromising security, speed, or control. Service-ability: Catalyzing a New Lending Paradigm ULI offers a comprehensive suite of differentiated services, including: Single API for similar servicesStandardized access and messaging protocolsState-wise land record searchesReal-time multilingual translations through "Bhashini"Crop phenology insights via satellite imagery and AI modelsMortgage due diligence frameworksLivelihood data such as milk pouring records for rural lendingAdvanced document verification, eKYC, eSign, eStamp, and GSTN integrations A notable technical achievement includes the normalization of fragmented state land record datasets into a unified API schema-an unprecedented engineering feat supporting lenders nationwide. Availability & Reliability: Non-Negotiable Standards ULI enforces a 24x7 availability standard aligned with modern banking expectations. Key strategies include: Heartbeat Monitoring: API endpoints are validated in real-time before transaction Redundancy: Plurality of similar services ensures continuity even if a primary service SRE (Site Reliability Engineering): Multi-layer observability across business, infrastructure, database, and network layers guarantees operational resilience. Security is fortified through tokenized authentication protocols, third-party VAPT (Vulnerability Assessment and Penetration Testing), and automated audit trails. Scalability: Built for India's Growth Ambitions ULI's microservices architecture, containerized deployments (Docker), and orchestration through Kubernetes allow elastic scaling-both horizontally and vertically. Whether lenders experience predictable growth or unpredictable spikes (such as festive season campaigns), ULI is engineered to respond dynamically. Proof in Action: Transforming Dreams into Reality At a recent global conference, ULI showcased its full-stack capabilities by processing a farmer's Kisan Credit Card loan application-end-to-end-within five minutes: Digital application intakeKYC and Bank account validationCrop analytics-based underwritingeSign and eStamp finalizationInstant loan disbursement notification A fitting testament to the vision of Viksit Bharat 2047 -building a financially inclusive, digitally empowered India. ULI's journey from concept to scale is a powerful reminder that innovation, when anchored in purpose and executed with discipline, can reshape entire industries. It is not merely a platform. It is a movement toward democratized credit, economic empowerment, and national progress. Kyndryl is driving digital transformation for banking and financial institutions in India, Know more The author is Jayakrishnan Rajagopalan, Chief Architect, BFSI in Enterprise Architecture, Digital Data AI : Consult Engineering and Delivery, Kyndryl India. Note: This article is a part of ETCIO's Brand Connect Initiative.
