RBI Monetary Policy: Coming soon, regulatory framework for default-loss guarantee arrangement in digital lending

The Reserve Bank of India (RBI) will come up with a regulatory framework for default loss guarantee arrangement (DLGA) in digital banking, governor Shaktikanta Das said on June 8 while announcing the outcome of the monetary policy committee meeting.

It has been decided to further promote responsible innovation and prudent risk management. It has been decided to issue guidelines on DLGA in digital lending, Das said.

"This will further facilitate the development of the digital lending ecosystem and enhance credit penetration in the economy," the governor said.

As expected, the MPC left the interest rates unchanged and stuck with "withdrawal of accommodation" stance.