Unified Lending Interface
RBI’s New Digital Financial Reforms: The Unified Lending Interface (ULI) has been conceptualized as a Digital Public Infrastructure (DPI) by the Reserve Bank of India (RBI). It is designed to aggregate data from multiple sources, allowing lenders to make more accurate and efficient credit assessments.
ULI aims to simplify and speed up the delivery of credit by integrating borrower information digitally. This is expected to enhance financial inclusion, especially for small businesses and individuals who face challenges accessing formal credit.
Static GK fact: India’s major DPIs include Aadhaar, UPI, and Account Aggregator Framework, which have transformed the country’s digital financial ecosystem.
CBDC Retail Sandbox
The RBI has also launched the CBDC Retail Sandbox to promote innovation in the Central Bank Digital Currency ecosystem. The sandbox will allow fintech firms to test and refine solutions for retail transactions using the Digital Rupee.
The CBDC, or Central Bank Digital Currency, represents a digital version of fiat currency issued directly by the central bank. Unlike cryptocurrencies, CBDC is regulated, providing the benefits of digital payments while maintaining monetary stability.
Static GK Tip: The Digital Rupee (e₹) was first piloted by the RBI in December 2022, making India one of the early adopters of sovereign digital currency.
Tokenisation of Certificates of Deposit
Another significant initiative is the tokenisation of Certificates of Deposit (CDs), aimed at improving efficiency and transparency in the money market. Tokenisation refers to the process of converting a real-world financial asset into a digital token recorded on a blockchain or distributed ledger.
This move will enable faster settlements, enhanced liquidity, and greater market transparency. By enabling token-based transactions, RBI aims to modernize the short-term money market instruments used by banks and financial institutions.
Static GK fact: Certificates of Deposit are negotiable money market instruments issued by banks or eligible institutions for short-term funds. They can be in dematerialized form or as Promissory Notes, with a maturity ranging from 7 days to 1 year.
Broader Impact
These initiatives collectively reflect the RBI’s broader strategy to digitize India’s financial ecosystem. By leveraging blockchain, AI, and data aggregation, the RBI is enabling a more transparent, efficient, and inclusive credit and settlement system.
These reforms also align with India’s Digital India and Fintech Vision 2025, positioning the country as a global leader in digital financial innovation.
Static GK Tip: The RBI, established on 1 April 1935, functions under the Reserve Bank of India Act, 1934, and is headquartered in Mumbai.
Static Usthadian Current Affairs Table
RBI’s New Digital Financial Reforms:
| Topic | Detail |
| Unified Lending Interface (ULI) | A Digital Public Infrastructure for credit assessment |
| Objective of ULI | Improve delivery and accessibility of credit |
| CBDC Retail Sandbox | Testing environment for fintech firms working on digital rupee |
| Nature of CBDC | Digital form of fiat currency issued by RBI |
| Tokenisation of CDs | Converts certificates into blockchain-based digital tokens |
| Benefit of Tokenisation | Faster settlement, liquidity, transparency |
| Issuer of CDs | Banks or eligible financial institutions |
| Maturity of CDs | Minimum 7 days to maximum 1 year |
| RBI Establishment Year | 1935 |
| RBI Headquarters | Mumbai |
