Fintechs to seek clarity on RBI lending rules

Fintech industry bodies, includingDigital Lenders Association of India (DLAI) and Fintech Association for Consumer Empowerment (FACE), are collecting inputs from member firms to discuss and seek clarity from the Reserve Bank of India (RBI) and will continue consultations on various aspects of First Loss Default Guarantee (FLDG) and Self-Regulatory Organization (SRO) in the digital lending guidelines released by the regulator on Wednesday, four people aware of the internal discussions told ET.

The RBI has, in the digital lending rules, addressed malpractices by illegal Chinese apps, putting a lid on measures such as data scraping from phones of consumers, emphatic consent for data collected for lending, upfront disclosure on all costs involved and a cooling-off period for borrowers to exit digital loans.