MUMBAI: RBI is moving towards a fully digital, data-driven, low-friction MSME credit ecosystem, with unified lending interface (ULI) and digital public infrastructure at the centre, backed by continued regulatory support and stronger participation from banks and MSMEs.Inaugurating an event for celebration of International MSME day in Kochi on Monday, RBI governor Sanjay Malhotra called upon banks and financial institutions to invest in the country’s digital public infrastructure stack including the account aggregator framework, ULI, TReDS, GST data trails, and Aadhaar-enabled authentication.“This will help create conditions for a fundamentally more inclusive credit ecosystem,” he said. He called upon banks to accelerate the implementation of various schemes like Priority Sector Lending, MUDRA, PM-SWANIDHI, PM Vishwakarma, Credit Guarantee Scheme for MSEs and not consider lending to MSMEs as a regulatory obligation alone, but as longterm business partners whose sustained growth generates durable financial returns and broad social value.“Relationship banking, deepened and informed by digital data, can be a powerful and humanising complement to technology-led credit delivery,” he said.The governor encouraged MSMEs to invest in technology, research and development, and innovation to remain competitive. He also urged them to embrace formal financial systems by registering under Udyam and actively using digital credit platforms.The governor also raised areas of concern that continue to constrain MSME financing. Foremost among these is the persistent credit gap, with the RBI acknowledging that despite progress, financing needs have not been fully met.This reflects ongoing under-penetration of formal finance and structural funding constraints. Frictions in credit delivery—such as lengthy processes, documentation burdens, and underwriting delays—remain significant, underscoring the need for faster, data-driven lending models.