Share on LinkedInShare on LinkedIn

ARTICLE · 19 MAY 2025

LSPs Under The RBI's Scanner

Ikigai Law
Explore more from Ikigai Law

Until now, RBI queries were routed through Regulated Entities (REs). But this time, during annual RE inspections, the RBI reportedly called in LSP employees directly.

IndiaTechnology
Aparajita Srivastava
Aparajita Srivastava
Astha Srivastava
Astha Srivastava
Shayeri Ray
Shayeri Ray
Samyukta Iyer
Samyukta Iyer
Author LinkedIn connections

Reports say that the RBI is now directly auditing Loan Service Providers (LSPs). Earlier, these conversations happened through Regulated Entities (REs). Now, LSPs are in the room. If you're an LSP, it's time to ramp up your compliance by strengthening your data privacy practices, ensuring transparent disclosures, showing operational independence, and staying within your defined roles. The Ikigai Fintech team unpacks this development here.

The Economic Times recently reported that the RBI is now directly auditing Loan Service Providers (LSPs).

Until now, RBI queries were routed through Regulated Entities (REs). But this time, during annual RE inspections, the RBI reportedly called in LSP employees directly. Questions were centered around tech stacks, onboarding flows, KYC, and disclosure practices.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Use Of Artificial Intelligence (AI) In Courts

On June 3, 2026, the Supreme Court of India’s AI Committee released preliminary draft of the Regulations for Use of Artificial Intelligence (AI) in Courts, 2026 (“The Draft”). This marks a shift from scattered experiments with AI tools for translation, transcription, research and case management. With over 93,000 pending matters as of March 2026, the guidelines aim to ease processes for officials and citizens. AI could help reduce backlogs through automated cause-list preparation, transcription, research, and defect scrutiny, but its use also raises serious concerns.
IndiaTechnology
S.S. Rana & Co.
S.S. Rana & Co.
Article

CERT-In’s New AI-Vulnerability Guidelines: A Quick-Reference For OEMs, Tech Vendors And In-House Counsel

Cybersecurity regulation in India has, until now, largely spoken to the entity that suffers the breach. The 2022 CERT-In Directions issued under Section 70B of the Information Technology Act, 2000 fixed a six-hour reporting clock on the organisation that detects an incident. The new Guidelines flip the lens onto the entity upstream of that breach, the OEM or technology provider that built the product in the first place. For the first time, vendors supplying software, firmware, cloud platforms, or APIs into India carry direct, time-bound, and independently verifiable obligations of their own and not obligations that are merely passed through a customer contract, but obligations CERT-In itself may enforce.
IndiaTechnology
S.S. Rana & Co.
S.S. Rana & Co.