Brief Overview:
The RBI on 14th February 2023 released Frequently Asked Questions (“FAQs”) on digital lending guidelines which were issued vide Circular DOR.CRE.REC.66/21.07.001/2022-23 dated 2nd September 2022.
Technical Details:
The FAQs provide clarity on various queries of stakeholders inter alia broadly capturing the below:
1) Clarity on the scope of digital lending, and lending service provider (“LSP”);
2) Disclosure and calculation of Annual Percentage Rate (“ARR”);
3) Governance of EMI programmes on Credit Card;
4) Extent of services provided by Payment Aggregators;
5) Refund of processing fee in case of cooling off period; and
6) Extent of exemption from direct disbursal to the bank account of the borrower, under the co-lending transactions.
For further details, please see:
Reserve Bank of India – Frequently Asked Questions (rbi.org.in)
For any queries / clarifications, please feel free to ping us and we will be happy to chat:
Mr. Ankit Sinha (ankit.sinha@jclex.com)
Mr. Saurabh Sharma (saurabh.sharma@jclex.com)
Ms. Rupul Jhanjee (rupul.jhanjee@jclex.com)
