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Exempt payment aggregators from bank account norm in digital lending: Payments Council to RBI

The Reserve Bank of India's (RBI) digital lending norms mandated that loan disbursals and repayments should be made to and from the borrowers and the RBI-registered lender's accounts, without passing through any third party accounts.

September 07, 2022 / 08:25 AM IST
Representative Image

Representative Image

The Payments Council of India (PCI), the apex body of payments and settlement players, has made a representation to the Reserve Bank of India (RBI) on digital lending norms notified by the regulator on September 2.

In the letter to RBI sent on the evening of September 6 which was reviewed by Moneycontrol, PCI has requested the regulator to exempt payment aggregators (PAs) from the norm that mandates loan disbursals and repayments be made to and from the borrowers and the RBI-registered lender's accounts.

A PA provides payment services for merchants, registered lenders, digital lending apps and e-commerce sites by accepting payment instruments from customers. As part of the process, they pool the funds received from customers and transfer them to the end beneficiary after a certain time.

RBI's norms on digital lending stated that "registered entities shall ensure that in no case, disbursal is made to a third-party account, including the accounts of loan service providers (LSPs) and their digital lending apps (DLAs), except as provided for in these guidelines".