Finance Minister Nirmala Sitharaman on June 18 called on fintech companies to mirror the success of the United Payments Interface (UPI) via a Unified Lending Interface (ULI) to streamline digital credit delivery. She said the move would unlock new markets in India’s hinterland and catalyse growth in micro, small and medium enterprises (MSMEs), while ensuring financial inclusion across all regions.
“On the lines of UPI, we are now moving towards a Unified lending interface for digital lending,” Sitharaman said at the Digital Payment Awards ceremony in New Delhi. She highlighted that “every fintech should view rural ground as an opportunity towards a new market as demand is reviving and sustaining there.” The minister emphasised that “future finance will be phygital – physical and digital” and noted that India’s fintech market is aimed to reach $400 billion by 2028-29, with 30 percent growth every year.
India has witnessed rapid fintech adoption – 87 percent of the population versus a 67 percent global level – driven largely by the UPI payments and government‑led initiatives such as direct benefit transfers (DBT).
In May 2025, UPI transactions stood at 1,867.7 crore by volume and Rs 25.14 lakh crore in value, while Rs 44 lakh crore has been transferred via DBT since 2014, saving Rs 3.48 lakh crore by plugging leakages. Sitharaman’s push for a ULI seeks to replicate these gains in the credit segment, particularly for MSMEs that often face barriers to formal lending.
Phygital Finance
Sitharaman argued that the future of finance lies at the intersection of physical and digital channels, noting that “it’s not a question of payment system but ramping up capacity in far flung areas like in Laddakh.” She pointed out that zero‑balance accounts today hold over Rs 2 lakh crore, and that 15 crore accounts are now linked to payment account aggregators, underscoring the sector’s expansive reach.
Global Ambitions
With international UPI payments already live in seven countries, including Bhutan, France, Sri Lanka and the UAE, Sitharaman said Indian fintech firms have the potential to become global players. “Several advanced countries do not have that much traction, progress in creating new paradigms in digital fintechs,” she observed, urging companies to leverage India’s proven digital infrastructure to expand overseas.
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