Digital lending in India is expected to become a $1.3 Tn market opportunity by 2030. This high-potential ecosystem can be segmented into the following five categories:

The new digital lending guidelines announced by RBI, aimed at curbing rising malpractices in the digital lending ecosystem, have made it mandatory that loan disbursals and repayments happen directly between the accounts of regulated lenders (NBFCs or Banks) and borrowers.
To quote the guideline, “All digital loans must be disbursed and repaid through bank accounts of regulated entities only, without pass-through of loan service providers (LSPs) or other third parties.”
With the question of compliancy looming large on any third party or fintech solution, the need to clarify the scope and responsibilities across the lending lifecycle is now paramount. This along with the promise of transparency in terms technology, and disclosures related to data gathering will be the key drivers of the regulated payment infrastructure in this new lending ecosystem.