The Reserve Bank of India in a set of FAQs on digital lending guidelines has clarified that payment aggregators acting as loan service providers (LSP) cannot handle funds between the lender and the borrower. Also reported earlier that payment aggregators had sought a relaxation from the RBI on its diktat to eliminate intermediaries in the loan disbursement process.
“The principle underlying the Digital Lending Guidelines is that a LSP should not be involved in handling of funds flowing from the lender to the borrower or vice versa,” the RBI said. “While entities offering only payment aggregator (PA) services shall remain out of the ambit of ‘Guidelines on Digital Lending’, any PA also performing the role of an LSP must comply with the Digital Lending Guidelines.”
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