- Entities which are regulated by the RBI and are allowed to carry out lending business.
- Entities that are authorized to carry out lending as per other statutory or regulatory provisions but are not regulated by the RBI.
- Entities lending outside the purview of any statutory or regulatory provisions.
- All loan disbursals and repayments are to be executed between the bank accounts of the borrower and the entity. This eliminates the presence of a nodal pass-through or pool account of the LSP.
- Lenders must inform the borrower about all the fees, charges, and the annual percentage rate (APR) in a standardised format.
- Charges payable to LSPs in the credit intermediation process will be paid directly by the bank and not the borrower.
- No automatic increase in credit limit can be made without the explicit consent of the borrower.
- Data collected by digital lending apps must be need-based, with the borrower’s prior consent, and can be audited if required.
- Banks and the LSPs associated with them must appoint a nodal grievance redressal officer to deal with fintech- or digital lending-related complaints.
- The borrower can complain to the Integrated Ombudsman Scheme of the RBI if their grievance is not resolved by the bank within 30 days.
- Regulated Entities are required to ensure that any lending carried out through digital lending apps has to be reported to Credit Information Companies (CICs).
- Lending through the Buy Now Pay Later (BNPL) mode also needs to be reported to the CICs.
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