Immigration Law & Unified Lending Interface (ULI)

• Opposition Concerns:
  • Congress' Manish Tewari claims the Bill violates constitutional provisions and may be used to deny entry based on ideological grounds.
  • Trinamool Congress' Saugata Roy argues it could hinder the inflow of talent in various fields.
• Government Stance:
  • Asserts full authority under the Union list to legislate on immigration and foreigners.
  • Maintains that the reform is needed for legal clarity and better governance.
• Namma Yatri drivers are also early adopters of Unified Lending Interface (ULI)
  • The initial focus of the Unified Lending Interface is to provide small-ticket loans.

Namma Yatri Pilots

• Pilot Overview:
  • Auto-rickshaw drivers on Bengaluru's Namma Yatri platform are part of the pilots testing unsecured credit via the Unified Lending Interface (ULI)
  • The primary aim is to provide small-ticket loans.
• Key Features & Initiatives:
  • Small-Ticket Loans: Focus on providing small-ticket loans for auto drivers.
  • Automated Repayments:
    • ULI plans to tap into UPI autopay mandates.
    • UPI autopay is already widely used.
• Platform & Technology:
  • ULI Functionality:
    • Unlocks both financial and non-financial data.
    • Reduces friction in customer journeys.
    • Utilizes standardized, "plug and play" APIs.
    • Simplifies documentation and systems.
• Development & Rollout:
  • Conceptualized by the RBI and developed by the Reserve Bank Innovation Hub (RBIH).
  • Pilots began in 2023 with a gradual rollout through 2024.
• Scale & Lender Participation:
  • As of December 2024, ULI has disbursed over 0.6 million loans totaling approximately ₹27,000 crore.
  • Around 36 lenders, including banks and NBFCs, are onboard with the platform.
• Innovative Collection Practices:
  • Dynamic Recollection:
    • Proposed model where loan collection amounts can adjust dynamically based on a driver's variable weekly or monthly earnings.
• Industry Impact:
  • Namma Yatri, a zero-commission mobility app on the ONDC, is leveraging ULI to potentially transform lending for small-ticket loans.
  • Former RBI governor Shaktikanta Das has remarked that ULI could revolutionize the lending space similarly to how UPI transformed payments.

Unified Lending Interface (ULI) Details:

• Digi platform to make the lending process easy.
• For: farmers, MSME’s.
• Features: gives digital access to financial & non-financial data of borrowers to lenders.
• Common & standard APIs → Plug & play approach
• TAM-UPI-ULI (new trinity)

Benefits of ULI:

• Frictionless credit.
• Appraisal time is improved.
• Centralized data access.
• Financial inclusion
• Addresses unmet demand for credit in agri & MSME sectors