RBI Governor urges States to onboard onto ULI, utilise Programmable CBDC

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RBI Governor Sanjay Malhotra urged states to adopt UPI-linked lending, leverage CBDC for direct transfers, and strengthen fiscal health nationwide

By BL Mumbai Bureau

Updated - October 27, 2026 at 09:05 PM.

RBI Governor Sanjay Malhotra | Photo Credit: ANI

Reserve Bank of India Governor Sanjay Malhotra on Tuesday urged the States to onboard onto the Unified Lending Interface (ULI) and utilise Programmable Central Bank Digital Currency (P-CBDC) for Direct Benefit Transfers (DBT). 

It may be pertinent to mention here that Deputy Governor Rohit Jain, in the August 5, 2026, post-monetary policy press conference, noted that a lot of interest is being shown by different State Governments to use the CBDC and the ULI for different schemes and that the central bank is in constant dialogue with them to increase their usage.

ULI enables lending institutions to offer frictionless, end-to-end digital credit by leveraging consent based data and related services. The programmability feature of CBDC serves as a key enabler for financial inclusion by ensuring delivery of funds to the targeted user.

Addressing the 36th Conference of State Finance Secretaries, Malhotra emphasised the importance of maintaining the quality of expenditure to ensure the long-term fiscal health of the States. He also underscored the need for the States to adopt prudent borrowing strategies and efficient cash management practices. 

The Governor also advised States to make effective use of the State Level Bankers’ Committee (SLBC) forum.

The meeting reviewed, market borrowings by the States, short-term financial accommodation to the States from Reserve Bank, adoption of Benchmark Issuance Strategy by the States, etc.

Published on October 27, 2026

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