SKS Advisor’s Post

Through Digital lending baking is reaching to the areas less travelled. It is coming as close as your mobile. But, this closeness is riskier if one does not understand the pitfalls and regulatory frameworks. To address this need and provide comprehensive insights into the regulatory framework governing digital lending practices, we have prepared a booklet based on the guidelines issued by the Reserve Bank of India (RBI). We are committed to keeping pace with the dynamic regulatory landscape in banking and finance to ensure our clients receive the most up-to-date and relevant guidance. Our dedicated team of legal experts closely tracks changes in legislation, guidelines, and policies issued by regulatory. By staying at the forefront of regulatory updates, we are able to anticipate emerging trends, assess potential implications, and advise our clients on proactive compliance measures and strategic opportunities. With this booklet we have tried to over a wide spectrum of issues and guidelines pertinent to digital lending in India. The booklet offers a detailed exploration of the regulatory landscape, encompassing key aspects such as data protection, consumer rights, transparency, and compliance requirements mandated by the RBI. By synthesizing and organizing the RBI guidelines into an accessible format, this booklet aims to empower stakeholders in the digital lending ecosystem, including banks, non-banking financial institutions, fintech firms, and borrowers, with a clear understanding of their rights, obligations, and best practices. However, we would like to add that this booklet is intended solely for informational purposes and does not constitute legal advice or professional guidance. While every effort has been made to ensure the accuracy and completeness of the information contained herein, readers are advised to consult qualified legal or financial professionals before making any decisions or taking any actions based on the content of this booklet. The views and opinions expressed in this booklet are those of the authors and do not necessarily reflect the official policies or positions of any regulatory authority or financial institution. The authors and ELP disclaim any liability for errors, omissions, or damages arising from the use of or reliance on the information provided herein. This booklet serves as an indispensable resource, providing valuable insights and guidance to foster responsible and sustainable digital lending practices in India

The Menace of Digital Lending in India – Urgent Need for Stricter Regulation . The rise of digital lending platforms has exposed borrowers to financial exploitation through predatory practices, excessive charges, and a lack of transparency. Example: “A borrower sanctioned ₹6.65 lakhs received only ₹6.13 lakhs after deductions for advance interest, mis-sold insurance, processing, and documentation charges – significantly reducing the usable loan amount while increasing repayment burdens.” While digital lending has improved credit accessibility, regulatory gaps have allowed such practices to thrive. Stricter compliance, transparent disclosures, and borrower protection measures by RBI are essential to ensure a fair and ethical lending ecosystem. #DLAI #ManishLunia #DigitalLending #FinancialRegulation #ConsumerProtection #Fintech #RBI #FinancialInclusion #India

In ever evolving landscape of digital lending in India, staying abreast of regulatory guidelines is essential for both financial institutions and borrowers alike. To address this need and provide comprehensive insights into the regulatory framework governing digital lending practices, we have prepared a booklet based on the guidelines issued by the Reserve Bank of India (RBI). With this booklet, we have tried to cover a wide spectrum of issues and guidelines pertinent to digital lending in India. The booklet offers a detailed exploration of the regulatory landscape, encompassing key aspects such as data protection, consumer rights, transparency, and compliance requirements mandated by the RBI. Access the booklet here: https://lnkd.in/djFAct9q Mukesh Chand #ELPinsights #IBC #consumer #digital #lending #regulatory #RBI #india

India Post Payments Bank entered into a strategic partnership with Ria Money Transfer to facilitate streamlined inward money remittance services in rural regions. The partnership aims to extend accessible, affordable, and reliable digital transactions for remittance facilities, eliminating the hassle of physical IDs, providing quick and secure doorstep banking solutions, and empowering the rural populace. This novel collaboration is a step towards financial inclusivity and enhanced convenience of banking that envisions long term economic growth. #Aapkabankaapkedwaar #Bankingatlastmile

The Crucial Role of Compliance in India’s Digital Lending Landscape 🌐💼 In India’s rapidly evolving digital lending ecosystem, compliance isn’t just a regulatory requirement—it’s the cornerstone of trust, sustainability, and growth. 📜✅ The Reserve Bank of India (RBI) has set stringent guidelines to ensure transparency, customer protection, and the ethical conduct of digital lending businesses. As industry professionals, we must not view these regulations as hurdles but as enablers of a more credible and resilient lending environment. Here’s why staying compliant matters: 1️⃣ Customer Trust: Adhering to RBI norms fosters confidence among borrowers, ensuring they feel secure and valued. 2️⃣ Long-Term Sustainability: Compliance mitigates operational risks and aligns business practices with global standards. 3️⃣ Market Credibility: Businesses that prioritize compliance stand out as reliable partners, gaining a competitive edge. #DigitalLending #ComplianceMatters #RBIRegulations #FinTech #ResponsibleLending

India's Evolving Financial Landscape: A New Era of Banking India's banking sector is witnessing rapid transformation with the rise of digital solutions, financial inclusion initiatives, and the growing fintech ecosystem. With UPI setting global benchmarks and the push towards a cashless economy, banks are not just financial institutions but key players in driving socio-economic change. What excites me most is how financial services are now reaching the remotest parts of the country, empowering millions through easy access to credit, savings, and investments. As we move forward, innovation, customer-centric solutions, and regulatory reforms will continue shaping the future of Indian banking. #Banking #Finance #India #DigitalBanking #FinancialInclusion #Fintech #UPI

Tap into #NewIndia’s booming banking sector, where 213 Micro Finance Institutions (#MFIs) across the country are making credit accessible to underserved sections of society. An opportunity to create social impact & drive growth: https://lnkd.in/ffrn5Y8 #InvestInIndia #DidYouKnow #InvestIndia #BankingForGrowth #FinancialInclusion Department for Promotion of Industry and Internal Trade Ministry of Commerce and Industry, Government of India NITI Aayog Reserve Bank of India (RBI)

Thought Leadership A New Era for Ethical Lending in India The Reserve Bank of India’s recent crackdown on non-compliant NBFCs marks a significant shift toward a more transparent and consumer-friendly financial system. By taking strong action against entities that imposed high-interest rates, lacked transparency, and violated fair practice guidelines, the RBI has underscored its commitment to consumer protection and ethical financial practices. This development serves as a reminder to all NBFCs to prioritize adherence to regulatory standards to preserve trust and stability in the financial ecosystem. As India moves forward, finding the right balance between regulatory control and operational independence will be key to ensuring a sustainable and inclusive financial future. For more information, please reach out to our partner Manjushree Somasundara 👉 https://lnkd.in/gG5Npq4t #FinancialTransparency #EthicalLending #RBICrackdown #ConsumerProtection #FairLending #Compliance #IndiaFinance

Digital transactions in India have grown by 90-fold in last 12 years. What does it mean for the Indian market. [Agenda Highlight] for India #Fintech #Convention 2025, 5th March 2025, Le Méridien, New Delhi. Register now for #ifc25 https://buff.ly/3YL68PU for an exclusive session on #innovations in digital #payments & #banking driving financial #efficiency.

India's credit market continues to be largely underserved, despite the emergence of new credit facilities. With the economy expected to double by 2030 both in rural and semi-urban areas, traditional methods of credit facilitation may struggle to keep pace. The State of Fintech Report talks about how this could be a significant opportunity for the FinTech sector to step in, bridge the gap, and meet the growing demand for accessible and inclusive financial services in the years to come. Gaurav Kumar Devarsh M. Vivek Srikantan Rahul Kanojia Kapil Rohilla Deep Kakkad Pritesh Mistry Amit S. Rajendra Saroj Salomi D’souza harsh ranjan Sreeram Gopalakrishna Janmit Singh Vinod RAI Anshul Malhotra Himanshu Kateja Kunal J. #FinancialInclusion #CreditInnovation #Compliance #Collections #FinancialServices #EmpathyInCollections #CollectCoLabs #spocto #Fintech