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INTRODUCTION
The Reserve Bank of India (the "RBI")
recently issued a notification1 (the
"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.
