RBI to review digital banking regulations, expand lending interface and CBDC pilots

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 report.

The 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 stated.

In 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 enhancements.

The RBI is actively exploring cross-border CBDC pilots, both bilateral and multilateral, to address challenges related to transaction turnaround times, efficiency, and transparency.

Further, 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 accounts.

Emphasizing 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