{"id":9434,"date":"2022-10-19T15:34:19","date_gmt":"2022-10-19T10:04:19","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=9434"},"modified":"2024-11-19T15:16:19","modified_gmt":"2024-11-19T09:46:19","slug":"digital-lending-guidelines-2022","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/business-banking\/digital-lending-guidelines-2022\/","title":{"rendered":"Solve for the latest digital lending guidelines with RazorpayX\u2019s Digital Lending 2.0"},"content":{"rendered":"

The new RBI guidelines made many lending merchants rethink their payment infrastructure and the way they were transferring money to their borrowers.\u00a0\u00a0<\/span><\/p>\n

Up until now, NBFCs transferred the money into third-party\/pool accounts – primarily owned by their Fintech partners, from where it was further disbursed by Fintechs to their borrowers. This money flow helped NBFCs limit their fund exposure with Fintech partners and work together seamlessly.\u00a0 <\/span>
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\n<\/span>Even at the time of repayment, the money was received in the payment gateway<\/a> and transferred into a third-party \/ pool account before it was transferred to the NBFC\u2019s current account.\u00a0<\/span>
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\"Digital
Old flow<\/figcaption><\/figure>\n

However, the digital lending guidelines announced by RBI on 2nd Sep 2022 clearly stated that loan disbursals & repayments must happen directly between the Regulated Entity (NBFC)\u2019s account and the borrower\u2019s account – as represented by the \u201cNew flow\u201d in the image below. Transferring money via third-party \/ Fintech-owned pool accounts is no longer compliant.<\/p>\n

\"Digital
New Flow<\/figcaption><\/figure>\n

This means that if you are an NBFC or a Fintech impacted by these guidelines, you now need to figure out:\u00a0<\/span><\/p>\n

1) A scalable & regulated way to make these direct money transfers \u00a0 <\/span>
\n<\/span>2) How to work with your Fintech \/ NBFC partners<\/span>
\n<\/span>3) How to manage day-to-day operations like reconciliations & reporting at scale – as the responsibility for these financial operations will now shift from Fintechs to the NBFCs<\/span><\/p>\n

Introducing RazorpayX\u2019s Digital Lending 2.0<\/b>
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RazorpayX\u2019s Digital Lending 2.0 is a full-stack lending suite that solves all of these problems. It not only helps you solve for your today, but also makes it easy for you to scale effortlessly tomorrow.<\/span><\/p>\n

\"Digital<\/p>\n

RazorpayX Digital Lending 2.0 is built on three core pillars<\/strong><\/p>\n

1) Secure Money Transfers<\/h3>\n

Automates direct money transfer between the Regulated Entity (NBFC)\u2019s account and the borrower\u2019s account, so you can adhere to the digital lending guidelines.<\/p>\n

2) Fintech Management System<\/h3>\n

A system that helps NBFCs and Fintechs collaborate efficiently and scale effortlessly \u2013 be it a 100:0 model or a co-lending model.
\nKey benefits:<\/p>\n