Allahabad HC: Police Report in Non-Cognizable Offence is a Complaint; Accused Must Be Heard First  ||  Kerala HC: Hospitals Must Display Rates and Cannot Deny Emergency Care For Lack of Advance Payment  ||  Orissa HC: Convict’s Refusal to Appeal Through Legal Aid Must be Recorded in Writing  ||  SC Halts Deer Translocation From Delhi’s AN Jha Park And Orders a Probe into DDA Negligence  ||  Supreme Court: The Growing Trend of Succeeding Benches Overturning Earlier Judgments is Troubling  ||  SC: Administrative Orders Must be Based on Stated Reasons and Cannot Add New Grounds Later  ||  HP HC: Mixing Contraband Pouches Before Sampling Raises Serious Doubts About Accused's Possession  ||  Bombay HC: Drug Names Using International Non-Proprietary Names Cannot be Monopolized  ||  Delhi High Court: Assets From Illegal Cricket Betting are Proceeds of Crime Attachable by ED  ||  Delhi HC: Extension to Issue SCN U/S 110 of The Customs Act Must be Granted Before Six Months Expire    

Guidelines on Default Loss Guarantee (DLG) in Digital Lending- (Reserve Bank of India) (08 Jun 2023)

MANU/RMIC/0066/2023

Banking

1. A reference is invited to Para (3.4.3.1) of Section C of Annex-II to the RBI Press Release "Recommendations of the Working group on Digital Lending - Implementation" dated August 10, 2022 in terms of which it was stated that the recommendation pertaining to First Loss Default Guarantee (FLDG) was under examination with the Reserve Bank.

2. Arrangements between Regulated Entities (REs) and Lending Service Providers (LSPs) or between two REs involving default loss guarantee (DLG), commonly known as FLDG, has since been examined by the Bank and it has been decided to permit such arrangements subject to the guidelines laid down in the Annex to this circular. DLG arrangements conforming to these guidelines shall not be treated as 'synthetic securitisation'1 and/or shall also not attract the provisions of 'loan participation'2.

3. The guidelines shall come into effect from the date of this Circular.

4. These directions are issued under sections 21, 35A and 56 of the Banking Regulation Act, 1949, sections 45JA, 45L and 45M of the Reserve Bank of India Act, 1934, section 30A of the National Housing Bank Act, 1987 and section 6 of the Factoring Regulation Act.

Tags : GUIDELINES   DLG   DIGITAL LENDING  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved