Guidelines on Financial Technology Lenders in India

09 Sep 2023

The Reserve Bank of India (RBI) has issued guidelines allowing banks and financiers to engage in First Default Loss Guarantee (FDLG) arrangements in digital lending, subject to certain conditions. These guidelines apply to cooperative banks, making it easier to lend. The Financial Technology industry views the guidelines as a positive step that will encourage partnerships and benefit lenders and borrowers. RBI's insistence on prompt default resolution demonstrates a commitment to a healthier lending environment.