NPCI Perspective – Unified Lending Interface (ULI)

Although the Reserve Bank of India initiated and is the regulatory backbone of this concept of ULI via their RBI innovation hub, it does not directly involve in the ULI project. It is conceptualized and developed by NPCI.
Just as NPCI governs the UPI payments ecosystem, it will oversee the end‑to‑end loan‑flow lifecycle: onboarding borrowers and lenders, certifying schemes, monitoring transactions, and using AI/ML to anticipate macro‑economic trends.

“NPCI’s role in ULI is to provide trust, stability, and foresight for a nation‑wide credit‑distribution rail.”

NPCI’s Core Mandates in ULI
Borrower On‑boarding, Verification & Regulation
Lender On‑boarding, Verification & Regulation
Government‑Scheme Registry & Management Portal
Regional Admin & Monitoring Dashboards
AI / ML Analytics & Predictive Engine
Transaction‑Volume Forecasting (UPI‑style)
Compliance & Reporting Framework
Importance Matrix (Risk vs Business Value)
References

1️⃣ NPCI Core Mandates in ULI

NPCI’s responsibilities span the entire credit‑distribution lifecycle:

Borrower onboarding, verification & regulation – KYC, credit‑score validation, eligibility checks.
Lender onboarding, verification & regulation – licensing, FCO list enforcement, compliance monitoring.
Government‑scheme registry & central portal – creation, versioning, and public exposure of subsidised‑loan schemes.
Regional admin dashboards – real‑time monitoring of transaction volumes, risk exposure, and macro‑economic impact across states and districts.

2️⃣ Borrower On‑boarding, Verification & Regulation

2.1 KYC & Document Validation

Borrowers upload required documents which flow through the Central Document Validation Service (CDVS) before NPCI issues a Borrower‑Verified Token (BVT).

2.2 Required Documents

Document	Purpose
PAN	Tax ID & credit check
Aadhaar (front/back)	Identity & address
Income Proof (salary slip / GST)	Verify repayment capacity
Business Registration (if entity)	Legal existence
Optional: Credit Bureau Report	Supplement NPCI score

2.3 Ongoing Monitoring

NPCI mandates periodic re‑KYC, AML screening, and black‑list updates. Any change triggers a re‑issuance of the BVT.

3️⃣ Lender On‑boarding, Verification & Regulation

3.1 Licensing Verification

Lenders submit licence numbers, capital adequacy proofs, and insurance documents. NPCI validates against its master registry.

3.2 Field‑Collection Officer (FCO) Registry Enforcement

NPCI audits the FCO list quarterly to ensure on‑ground verification capability.

3.3 Ongoing Supervision

NPCI monitors transaction‑level data, enforces NPA thresholds, and requires periodic stress‑tests.

KPI Table (NPCI Monitoring)

KPI	Definition	Reporting Frequency
Capital Adequacy Ratio (CAR)	Tier‑1 capital / risk‑weighted assets	Quarterly
NPA Ratio	Non‑performing assets / total loan book	Monthly
Scheme Utilisation %	Loans under government schemes / total loans	Real‑time
Transaction Volume (₹)	Total disbursement & repayment amount per day	Daily
AI‑Flagged Anomalies	Number of transactions flagged by fraud‑guard	Real‑time

4️⃣ Government‑Scheme Registry & Management Portal

4.1 Central Scheme Catalog

A version‑controlled repository stores all loan‑subsidy schemes, eligibility rules, and subsidy percentages.

4.2 CRUD API for Schemes

POST /admin/schemes/create
PUT /admin/schemes/{schemeId}
DELETE /admin/schemes/{schemeId}
GET /admin/schemes (audit log included)

4.3 Public Scheme Explorer

Lenders and borrowers can query /api/v1/schemes to discover applicable schemes.

Sample Scheme JSON

{
  "schemeId": "MSME_GUARANTEE_2025",
  "name": "MSME Credit Guarantee",
  "eligibility": {
    "maxTurnover": 5000000,
    "sector": ["Manufacturing", "Services"]
  },
  "subsidyPercentage": 75,
  "effectiveFrom": "2025-01-01",
  "effectiveTo": "2027-12-31"
}

5️⃣ Regional Admin & Monitoring Dashboards

5.1 Dashboard Tiles

Heat‑Map of transaction volume by state/district.
Lender Risk Exposure per region.
Borrower Credit‑Score Distribution.
Scheme Uptake heat‑map.

5.2 Alert Engine

Threshold‑based alerts (e.g., sudden spike in loan approvals in a district) are pushed to regional admins via email/SMS.

5.3 Drill‑down Views

Clicking a state reveals lender‑wise breakdown, NPA trends, and scheme performance.

6️⃣ AI / ML Analytics & Predictive Engine

Use‑Case	Data Sources	Model Type	Business Impact
Macro‑Economic Forecast	Transaction volume, sector‑wise loan growth, repayment patterns	Time‑Series (Prophet / LSTM)	Predict inflation, liquidity needs, policy adjustments
Credit‑Risk Early‑Warning	Borrower credit scores, repayment history, cash‑flow anomalies	Gradient‑Boosted Trees	Pre‑empt NPA spikes, trigger supervisory actions
Scheme‑Effectiveness Analyzer	Scheme utilisation, repayment outcomes, default rates	Causal Inference (DoWhy)	Optimize subsidy allocations, retire ineffective schemes
Fraud Detection	Transaction velocity, device fingerprints, geo‑patterns	Auto‑Encoder / Isolation Forest	Reduce synthetic identities, flag collusion

7️⃣ Transaction‑Volume Forecasting (UPI‑style)

NPCI already monitors UPI transaction volume (billions per day). For ULI we will reuse the same telemetry stack (Kafka → Flink → ClickHouse) and extend the schema to include loan‑specific fields (amount, tenure, scheme).

Metric	Current (Daily)	Forecast (7‑day)	Forecast (30‑day)
Disbursement Volume (₹)	2.3 B	2.5 B ± 5 %	2.8 B ± 8 %
Repayment Volume (₹)	1.9 B	2.0 B ± 4 %	2.3 B ± 7 %
New Loan Applications	150 k	160 k ± 6 %	170 k ± 9 %

8️⃣ Compliance & Reporting Framework

Real‑time Auditing – Every API call is logged with an immutable hash (SHA‑256) stored in an append‑only ledger.
Periodic Reports – Daily, weekly, and monthly compliance packs (PDF/CSV) automatically generated and delivered to NPCI’s internal portal.
Regulatory Sandbox – NPCI can spin up a sandbox environment for new schemes or policy experiments without affecting production.

9️⃣ Importance Matrix (Risk vs Business Value)

Feature	Risk (1‑5)	Business Value (1‑5)	Priority
Borrower KYC & Credit‑Score Validation	4	5	High
Lender Licensing & FCO Enforcement	4	5	High
Scheme Registry & Versioning	3	5	High
Regional Monitoring Dashboards	3	4	Medium
AI‑Driven Macro‑Economic Forecast	3	5	High
Real‑time Transaction Telemetry (UPI‑style)	2	5	High
Automated Compliance Reporting	2	4	Medium
Fraud‑Guard & Anomaly Detection	3	4	Medium
Sandbox for Policy Experiments	2	4	Medium

🔟 References

Ministry of Finance – Government Loan Scheme Catalog 2025.
UPI telemetry documentation – https://www.npci.org.in/product/upi/product-statistics (for data‑pipeline inspiration).
OpenAPI spec of an existing UPI provider project (used as a template for request/response schemas).

This Document is just a mock architecture of a "Could be" lending management app. This does not mimick or represent any real world lending interface system.

ULI - Unified Lending Interface - Part Three