Stakeholders in India’s fintech sector have commenced consultation with its members in a bid to understand the digital lending guidelines released by the RBI on Wednesday.
The exercise is been carried out by the stakeholders including the Digital Lenders Association of India (DLAI) and the Fintech Association for Consumer Empowerment (FACE).
As reported by ‘The Economic Times, the RBI on Wednesday brought in operational rules around upfront disclosure of interest rates and other costs, reporting of all loans to bureaus, and strict compliance with data collection.
The guideline released by the RBI also mandates financial institutions in the country to put in place systems to address consumer grievances within 30 days, and to conduct thorough due diligence of fintech partners before partnering with them.
According to the report, the stakeholders will continue consultations on various aspects of the First Loss Default Guarantee (FLDG) and Self-Regulatory Organization (SRO) in the digital lending guidelines released by the regulator on Wednesday.
“The RBI has not given any implementation timeline for these new guidelines. While the general rule is as soon as possible, bodies will write to the RBI on the timeline as well as seek clarification after collating inputs from members,” TEC’s report quoted a FinTech founder, who is a member of the industry bodies.