Rbi Digital Lending Guidelines 2022

The document outlines key principles for a responsible lending framework, including: 1) Loan terms and fees should be clearly disclosed upfront and borrowers should make payments directly to the lender to avoid hidden charges. 2) Borrowers' rights such as grievance redressal processes, consent requirements for data use and credit limit increases, and cooling-off periods should be established. 3) Lenders and partners must undergo due diligence, and borrowers should have control over their data and its use.

Uploaded by

jituhero007

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as DOCX, PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

25 views2 pages

Rbi Digital Lending Guidelines 2022

Uploaded by

jituhero007

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as DOCX, PDF, TXT or read online on Scribd

You are on page 1/ 2

Topic Summary Example

Customer Loan servicing and repayment should be direct with Borrowers should make payments to the RE's
Protection the RE. bank account.
Fees and charges should be paid by the RE, not the The RE should bear the cost of processing fees.
borrower.
Disclosure Key information like APR and recovery mechanism Borrowers should be informed about applicable
must be provided upfront. fees and penalties.
Digitally signed documents should be automatically Loan agreements should be electronically signed
sent to the borrower. and shared with the borrower.
Grievance Redressal REs and LSPs should have a grievance redressal officer. A dedicated officer handles complaints and
resolves issues.
Borrowers can lodge complaints through the Complaints can be registered online through a
Complaint Management System portal. designated portal.
Creditworthiness Economic profile of borrowers should be captured for Age, occupation, and income details are
Assessment credit assessment. collected for evaluation.
Credit limit increase requires explicit consent from the Borrowers must provide consent for any increase
borrower. in credit limit.
Cooling off/Look- Borrowers have an option to exit the loan during this Borrowers can choose to repay the principal
up Period period without penalty. amount within a specific timeframe to close the
loan.
Due Diligence Enhanced due diligence and periodic reviews of LSP REs should assess LSPs' technical abilities and
conduct should be conducted. compliance with regulations.
REs should guide recovery agents and ensure LSPs acting as recovery agents should follow
compliance with instructions. responsible practices.
Technology and Borrower data collection should be need-based with Only essential borrower information is collected
Data explicit consent. with consent.
Borrowers have control over data consent, sharing, Borrowers can choose to restrict data sharing
and deletion. with third parties.
Data storage guidelines and privacy policies should be Clear policies are established for data storage
in place. and handling.
Regulatory Reporting lending activities to Credit Information Lending details are reported to credit bureaus for
Framework Companies. credit history evaluation.
Adherence to securitization guidelines for loss sharing REs should comply with provisions related to
arrangements. First Loss Default Guarantee.