InfoAlert | Loans Sourced by Banks and NBFCs over Digital Lending Platforms: Adherence to Fair Practices Code and Outsourcing Guidelines

Published On: 07/07/2020

Practice Area: Banking & Finance

Authors:

Avimukt Dar
Namita Viswanath
Shreya Suri
The Reserve Bank of India recently issued a notification to reiterate and ensure compliance of the Fair Practices Code and outsourcing guidelines for financial services, in letter and spirit, by banks and non–banking financial companies (NBFCs) providing loans through digital lending platforms. This notification comes in the backdrop of the emerging developments in the financial sector in India, with banks and NBFCs lending to customers such as retail individuals, small traders and other borrowers, both, directly through their own digital platforms as well as under outsourcing arrangements with third party digital lending platforms.