The Reserve Bank of India (RBI) has unveiled plans for a Unified Markets Interface (UMI), a next-generation financial market infrastructure that will allow tokenisation of financial assets and settlements using the wholesale Central Bank Digital Currency (CBDC).
Governor Sanjay Malhotra announced the initiative at the Global Fintech Fest 2025, describing it as a step toward building the digital backbone of India’s future financial ecosystem.
What is the Unified Markets Interface?
According to Malhotra, the Unified Markets Interface will serve as a digital platform that connects various segments of the financial markets — including bonds, securities, and other capital market instruments — into a single interoperable system.
The UMI will enable the conversion, or “tokenisation,” of traditional financial assets into digital tokens that can be securely traded and settled in real time.
This means that instruments such as government securities or corporate bonds could eventually exist in a tokenised form on distributed digital ledgers, allowing instantaneous transfer of ownership and settlement.
The RBI envisions this infrastructure as the foundation for more transparent, efficient, and programmable market operations in India.
How tokenisation and CBDC will transform settlements
A key feature of the proposed UMI is its integration with the RBI’s wholesale CBDC. By leveraging the digital rupee for settlement, the system will eliminate delays and reduce settlement risk in large-value transactions.
Tokenised assets, combined with programmable smart contracts, can automate compliance checks, margin requirements, and payment triggers—functions traditionally performed by multiple intermediaries.
In simple terms, the use of CBDC within UMI will allow “instant finality” in settlements, replacing current multi-step clearing systems.
The move also aligns India with emerging global trends, where central banks are exploring digital currency frameworks to enhance the security and resilience of financial infrastructure.
A step toward a unified digital financial architecture
The RBI’s new initiative reflects a broader vision to unify India’s digital finance infrastructure. Alongside UMI, Malhotra said the central bank is working on a Unified Lending Interface (ULI), which aims to do for credit markets what the Unified Payments Interface (UPI) did for retail payments.
The ULI will help lenders use richer datasets to improve credit risk assessment and lending efficiency.
Malhotra also emphasised the importance of inclusivity, urging India’s fintech industry — which now includes over 10,000 firms — to build products that are accessible to all, including the elderly, people with disabilities, and those with limited digital literacy. “Innovation must walk hand in hand with inclusion,” he said.
Why this matters for India’s financial markets
The introduction of the UMI marks a potential turning point in how India’s financial system is structured and operated.
If implemented successfully, it could reduce transaction costs, enhance market transparency, and open doors for programmable financial products.
Moreover, it signals the RBI’s strategic move to position India at the forefront of global financial innovation. While the central bank continues to proceed cautiously with a nationwide CBDC rollout, the UMI underscores its intent to gradually modernise market infrastructure without disrupting stability.
Deputy Governor T. Rabi Shankar recently reiterated that the RBI is “not in a hurry” to expand CBDC use across sectors, preferring to build the ecosystem carefully.
Still, the conceptualisation of the Unified Markets Interface reveals how the RBI is reimagining the architecture of financial markets — one that could ultimately make India a leader in digital-era finance.
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