Q1: Can an LSP (Fintech) charge a “Platform Fee” directly to the borrower?\u00a0<\/strong><\/p>\n\n\n\nNo. Under current RBI rules, all fees must be paid by the RE (Bank\/NBFC) to the LSP. The borrower should not see any separate bill or payment request from the fintech app; all costs must be bundled into the loan’s Annual Percentage Rate (APR).<\/p>\n\n\n\n
Q2: What is the “50-50 Test” for NBFC registration?\u00a0<\/strong><\/p>\n\n\n\nTo qualify as an NBFC, a company must pass the Financial Activity Test: over 50% of its total assets must be financial assets, and over 50% of its gross income must be derived from those assets.<\/p>\n\n\n\n
Q3: Is “Click-wrap” (ticking a box) sufficient for loan agreements?\u00a0<\/strong><\/p>\n\n\n\nWhile common, the RBI now prefers Aadhaar e-Sign or Digital Signatures for the actual loan contract. If using click-wrap, you must maintain a “Secure Audit Trail” that captures timestamps, IP addresses, and the exact consent language shown to the user.<\/p>\n\n\n\n
Q4: Can we increase a user\u2019s loan limit automatically if they pay on time?\u00a0<\/strong><\/p>\n\n\n\nNo. “Unsolicited Limit Enhancement” is prohibited. You must obtain explicit, fresh consent (usually via OTP or a digital signature) before increasing a borrower’s credit limit.<\/p>\n\n\n\n
Q5: Are we allowed to use AI for “automated rejection” of loans?\u00a0<\/strong><\/p>\n\n\n\nYes, but you must be able to provide the “Logic of Rejection” if a borrower or the RBI asks. Your AI\/ML models must be auditable and free from discriminatory bias.<\/p>\n","protected":false},"excerpt":{"rendered":"
The banking system has been expanded significantly in recent years thanks to accelerated digitization. The high internet coverage, combined with the massive use of smartphones, has transformed the banking landscape, spanning credit-seekers from all walks of life, regardless of their financial standing. This also presents viable business opportunities in the digital lending domain, per se. […]<\/p>\n","protected":false},"author":8,"featured_media":7337,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1069],"tags":[1134,1135],"class_list":["post-7331","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rbi-digital-lending","tag-digital-lender","tag-rbi-digital-lending"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/posts\/7331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/comments?post=7331"}],"version-history":[{"count":5,"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/posts\/7331\/revisions"}],"predecessor-version":[{"id":7336,"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/posts\/7331\/revisions\/7336"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/media\/7337"}],"wp:attachment":[{"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/media?parent=7331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/categories?post=7331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisou.com\/blog\/wp-json\/wp\/v2\/tags?post=7331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}