Susanta Dash

RBI Digital Lending Directions 2025: Deep Dive Series [Part 2] Continuing our analysis of the Reserve Bank of India (RBI)'s latest framework for digital lending, today we focus on Data Storage and Security (Section 13) - a critical pillar to safeguard borrower information. Key mandates from RBI’s directive (RBI/2025-26/36) include: 1/Minimal Data Storage by LSPs: Lending Service Providers may only retain essential personal data such as borrower name, address, and contact details. Nothing beyond what’s necessary. 2/Regulated Entities’ Accountability: The Regulated Entity (RE) holds full responsibility for ensuring data privacy and security of borrower information at all times. 3/ Transparent Data Policies: REs and LSPs must publicly maintain clear policies detailing: - Types of data stored - Duration of storage - Restrictions on use - Data destruction protocols - Procedures for handling security breaches No Biometric Data Unless Allowed by Law: Storage or collection of biometric data is prohibited unless specifically authorized by statutory regulations. Data Localization with Controlled Cross-Border Processing: All data must be stored on servers physically located in India. If data processing occurs abroad, it must be deleted from foreign servers and returned to India within 24 hours. These requirements reinforce India’s commitment to strong data sovereignty and borrower privacy, closely aligned with principles under the Digital Personal Data Protection Act 2023 Stay tuned for the next part of our series, where we’ll explore borrower rights and transparency obligations under the RBI directive. Consent Foundation | Concur - Consent Manager | Fintech Association for Consumer Empowerment (FACE) | Microfinance Industry Network (MFIN) | Sa-Dhan | Consumer Guidance Society Of India #RBI #DigitalLending #DataStorage #DataSecurity #DataLocalization #DPDPA #FintechCompliance #DataPrivacy #Concur

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𝐊𝐞𝐲 𝐩𝐨𝐢𝐧𝐭𝐬 𝐨𝐧 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐋𝐞𝐧𝐝𝐢𝐧𝐠 𝐃𝐢𝐫𝐞𝐜𝐭𝐢𝐨𝐧𝐬, 2025 𝐛𝐲 𝐑𝐁𝐈 These directions aren't just guidelines; they represent a strong commitment to building a transparent and secure digital credit ecosystem in India. This comprehensive framework puts: ✅ 𝑬𝒏𝒉𝒂𝒏𝒄𝒆𝒅 𝑩𝒐𝒓𝒓𝒐𝒘𝒆𝒓 𝑷𝒓𝒐𝒕𝒆𝒄𝒕𝒊𝒐𝒏: The directions prioritize borrower safety through mandated disclosures (like Key Fact Statement), cooling-off periods to exit loans without penalty, and clear grievance redressal channels. ✅ 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐝 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐟𝐨𝐫 𝐏𝐥𝐚𝐭𝐟𝐨𝐫𝐦𝐬: Regulated Entities (REs) are fully responsible for the digital lending activities carried out by their Lending Service Providers (LSPs), necessitating enhanced due diligence and oversight of these third parties. ✅ 𝑺𝒕𝒓𝒊𝒄𝒕 𝑫𝒂𝒕𝒂 𝒂𝒏𝒅 𝑻𝒆𝒄𝒉𝒏𝒐𝒍𝒐𝒈𝒚 𝑵𝒐𝒓𝒎𝒔: The regulations impose stringent rules on data collection (requiring explicit consent and limiting access to phone resources), data storage (mandating storage within India), and comprehensive privacy policies. ✅ 𝑻𝒓𝒂𝒏𝒔𝒑𝒂𝒓𝒆𝒏𝒄𝒚 𝒕𝒉𝒓𝒐𝒖𝒈𝒉 𝑫𝑳𝑨 𝑹𝒆𝒑𝒐𝒓𝒕𝒊𝒏𝒈: REs are required to report all Digital Lending Apps/Platforms (DLAs) they use or are associated with to the RBI, contributing to a centralized directory for increased transparency in the ecosystem. _______________________________________ Let me know in the comments what are your views about these directions?

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Shardul Amarchand Mangaldas & Co. (SAM) advised NPCI International Payments Limited (NIPL) on its landmark strategic partnership with PayPal Network Pte. Ltd. — a collaboration that sets the stage for a truly global and interoperable digital payments ecosystem, designed to seamlessly connect consumers and businesses across borders.   Through this partnership, PayPal World will integrate India’s pioneering Unified Payments Interface (UPI) into its global network, empowering users and enterprises worldwide to transact with unprecedented ease, security, and transparency. This initiative marks a significant leap forward in expanding UPI’s global reach and redefining the future of cross-border payments for millions of Indian consumers and merchants.   By bridging some of the world’s largest payment systems and digital wallets, the platform aims to simplify the complex web of international money movement and cement India’s position as a global leader in digital payments innovation. It represents a transformative step towards a more inclusive, borderless, and efficient global payment architecture — one that embodies India’s vision of fintech-driven transformation.   The SAM team comprised Nishant Singh (Partner), Prachi Pandit (Principal Associate), Charith Reddy (Senior Associate), Swasti Patoria (Associate), and Shivangi Paliwal (Associate).   Proud to have contributed to a transaction that not only bridges networks but also reshapes the landscape of cross-border commerce and financial inclusion.   #Fintech #UPI #CrossBorderPayments #Innovation #DigitalTransformation #NPCI #PayPal #India #LegalAdvisory #ShardulAmarchand #Payments #samthoughtleadership

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With India’s shift towards a cashless economy, digital adaptation remains challenging for many, especially senior citizens. Mr. Sanjay Kaushik CFE, FCIISCM, CATS, CCPS, CFAP cybersecurity expert and MD, Netrika Consulting India Pvt Ltd emphasizes the role of biometric authentication in bridging this gap, as it simplifies digital transactions for seniors by eliminating password hassles and reducing fraud risks. Read the full article to explore his expert insights on safeguarding against the growing threats in the banking sector. https://bit.ly/422SN8C #netrika #netrikaconsultingindia #netrikasolutionsindia #cyberthreats #cyberscams #cybersecuritypractices #bankingfrauds #bankingscam #digitalpaymentfrauds #digitalpayment #digitalawareness #digitalindia #seniorcitizen

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Mumbai-based Fintech BRISKPE has received in-principle authorization from the Reserve Bank of India (RBI) to function as a cross-border payment aggregator (PA-CB) under the Payment and Settlement Systems Act, 2007. This approval allows BRISKPE to facilitate secure international transactions for businesses by operating export and import collection accounts with RBI Category-I banks, which are authorized to handle foreign exchange transactions. Founded in 2022 by Sanjay Tripathy, Indunath Chaudhary- इन्दुनाथ चौधरी, and Nilesh Pathak, BRISKPE specializes in helping MSME exporters and importers streamline global payments. The PayU-backed platform processes 10,000 export transactions monthly, a number it now expects to scale up to 1 lakh. CEO Sanjay Tripathy called the RBI approval a "transformative moment" for BRISKPE and Indian businesses engaged in international trade. In 2023, the RBI introduced new regulations for cross-border payment aggregators, making platforms like Cashfree, Skydo, BillDesk, and Amazon Pay India among the early applicants for PA-CB licenses. BRISKPE had previously raised $5 million in seed funding from PayU to expand its services. With the latest approval, it aims to further streamline global trade payments for Indian businesses. Team Briskpe👇 Sanjay Tripathy | Indunath | Nilesh Pathak | Guneshwor Singh | Anurag Ahlawat |

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The uncertainty surrounding the capabilities of a digital platform for financial services and the absence of a licensing framework pose challenges for banks engaging in partnerships with or lending their licenses to such entities. The Reserve Bank of India (RBI) needs to clarify the concept of neobanks to address this ambiguity. Is this collaboration permissible? Establishing clarity in this area could lead to significant cost and time savings for investors and founders. Reserve Bank of India (RBI) #venture #capital #neobank #banking #startup #fintech

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The #RBI has authorised #UPI transactions for fully compliant KYC Prepaid Payment Instruments via third-party apps, enhancing digital payment accessibility. In this ERGO Update, Harsh Walia, Abhinav Chandan, Rupendra Gautam and Sanskriti Shrivastava explore the key changes and their impact on the #DigitalPayments ecosystem in India. https://lnkd.in/g-3GRCZP #KhaitanCo #KCONewsflash

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