In August last year, the Reserve Bank of India (RBI) tightened norms for digital lending to prevent charging of high-interest rates by certain entities and also check unethical loan recovery practices.
The onset of the pandemic exhibited the need for the deployment of Financial Technology solutions. It offers a myriad of opportunities to customers who once faced challenges due to the cumbersome process and lack of.
The digital lending sector in India has witnessed remarkable growth in the past few years, driven by the increasing demand for credit, the proliferation of smartphones and the internet, and the innovation and disruption brought.
RBI has approved the First Loss Default Guarantee (FLDG) programme, which allows fintechs to partner with banks and NBFCs. This move is expected to strengthen the digital lending ecosystem and is seen as positive for data-tech NBFCs and fintechs.