Circular - NewNerve

The Reserve Bank of India (RBI) has issued draft guidelines to ensure transparency in the aggregation of loan products from multiple lenders. This move is aimed at enhancing customer centricity and ensuring complete transparency for borrowers in the credit intermediation process. Key Highlights of the Draft Guidelines: Aggregation Services: Many Lending Service Providers (LSPs) offer aggregation services for loan products. An LSP or a Regulated Entity (RE) acting as an LSP may have outsourcing arrangements with several lenders. The Digital Lending App/Platform (DLA) of the LSP/RE matches the borrower to one of the lenders. In cases where an LSP has arrangements with multiple lenders, the identity of the potential lender may not be known upfront to the borrower. Prior Information t...

Here’s a concise summary based on the draft circular for Payment Aggregators (PAs) issued by the Reserve Bank of India (RBI): Objective: The circular aims to introduce amendments to the Payment Aggregators (PA) framework. Some Key Points of the draft circular: Risk Management: PAs must implement robust risk management practices, including monitoring and mitigating risks associated with transactions. Merchant Onboarding: PAs should ensure thorough due diligence while onboarding merchants. Transaction Limits: PAs must set transaction limits for merchants based on their risk profiles. Escrow Account: PAs must maintain an escrow account with a scheduled commercial bank. Security Measures: PAs should enhance security measures to prevent unauthorized access and fraud. ...

Tag: Circular

Decoding RBI’s Draft Guidelines on Digital Lending- 26th April 2024

Review of Draft circular by RBI “Amendments to PA (2)”