RBI Comprehensive Directions on Digital Lending & Fintech NBFC Partnerships: Key Action Items
Published:
August 21, 2026
5 min read
Critical compliance imperatives for regulated entities and Lending Service Providers (LSPs) regarding Default Loss Guarantee (DLG) caps and borrower data privacy.
The Reserve Bank of India has solidified the regulatory perimeter for fintech platforms offering co-lending and Buy-Now-Pay-Later (BNPL) credit. First-loss default guarantees are strictly capped at 5% of the total loan portfolio, and direct loan disbursement into the borrower's bank account without pass-through pools is strictly mandated.
Rohan Merchant
Partner, Banking & Project Finance • Mumbai
Rohan Merchant specializes in banking, syndicated debt facilities, structured project finance, and debt restructuring. He has advised premie...