In accordance with the new digital lending guidelines released by the Reserve Bank of India, Razorpay’s business banking platform, RazorpayX, has introduced Digital Lending 2.0, a digital lending solution for NBFCs and fintechs (RBI).
Up until this point, NBFCs transferred the funds into fintech accounts or third-party pool accounts, from which fintechs then disbursed the funds to their respective borrowers. However, in accordance with the most recent regulations, sending money through a pass-through account or pool account of any third party or fintech is no longer acceptable. The new solution, according to the company, will facilitate effective collaboration between NBFCs and fintechs by automating direct disbursals and repayments between the borrower’s and the regulated entity’s accounts.
