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The Reserve Bank of India (RBI) on Friday issued frequently asked questions (FAQs) to provide more clarity on its guidelines for default loss guarantee (DLG) in digital lending
While the guidelines mandate the banks accepting DLG cover to have a Board approved policy in place, the banks acting as DLG providers shall also put in place Board approved policy as a prudent measure, the RBI said.
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The guidelines promote increased transparency in digital lending ensuring that borrowers do not avail digital lending from fraudulent or unauthorised platforms and ensures privacy of borrowers’ data
On June 8, 2023, the Reserve Bank of India (RBI) issued the guidelines on Default Loss Guarantee (DLG) in Digital Lending (FLDG guidelines) recognising the ......
The Reserve Bank of India Digital Lending Guidelines appeared to prohibit any transfer of risk by an RE to a third party in relation to lending, and therefore led to some industry-wide confusion on whether REs could enter into Digital Lending Guidelines arrangements.