Overview There has been exponential growth in the digital lending industry, with many innovations driving the sector to produce many new financial products and services into the market. And with these products and services gaining popularity, regulatory bodies such as the RBI and Google Play Store are constantly monitoring them to ensure they are efficient and in the best interests of consumers. Hence, recent regulations have been introduced in the digital lending sector. We had industry experts from CloudBankin give us a glimpse of how the guidelines impacted the overall industry in our rec ..read more

Introduction: Indian Lending Ecosystem and Importance of Data and AI The lending landscape in India is diverse and multifaceted, encompassing a variety of platforms and institutions. These include traditional banks, platforms catering to Small and Medium Enterprises (SMEs), consumer-focused lending platforms, retail card providers, platforms with a focus on financial inclusion, and peer-to-peer lending platforms. Within this landscape, the role of data and Artificial Intelligence (AI) is pivotal in shaping decision-making tools for lenders using a comprehensive digital lending software to str ..read more

In this blog, we will unravel the mystery of data submission for credit reporting by financial institutions. Think of it as our way of making this topic as exciting as finding extra fries at the bottom of your takeout bag! In today’s lightning-fast world, getting your credit data right is a bit like using the perfect emoji – it speaks volumes. This isn’t just about credit scores; it’s the secret sauce behind digital lending software and your trusty loan management system. We’ll be your trusty guide, showing you how to waltz through the world of data submission. Banks, NBFCs, and other financ ..read more

Significance of Each Segment in the Uniform Credit Reporting Format Consumer Borrowers Header Why: To ensure each report is traceable, timely, and categorized appropriately. Benefit: Offers a quick overview and ensures the authenticity and timeliness of the report. Name Why: To capture the full legal name of the borrower for accurate identification. Benefit: Ensures accurate identification and reduces the risk of fraud. ID Why: To provide multiple methods of verifying the borrower’s identity. Benefit: Enhances security and ensures the borrower’s authenticity. Telephone Why: To establis ..read more

Credit Reporting Format For Financial Institutions By The RBI Let’s decode the RBI’s credit reporting format for financial institutions. It acts as a beacon for financial entities, ensuring data integrity and streamlined operations. Access the complete documentation from here. Credit Reporting Format For Consumer Borrowers (Image Credit: Equifax) What’s Segments Are Included? 1. Header Reporting Member / Processor User ID: This field likely identifies the unique ID of the reporting member or the processor user. It ensures that the data is traceable back to the source. Reporting Member / Proc ..read more

Key Players: Financial Institutions in Credit Reporting Banking Companies: These are the big shots like the State Bank of India, your friendly neighbourhood banks, cooperative banks, and the nationalized ones. They’re the trusted pillars of financial stability. Non-Banking Finance Companies (NBFCs): Picture them as the cousins of banks. They offer similar financial services but don’t have that official banking license. They’re like your go-to for financial help when you need it most. Public Financial Institutions: Think of them as the referee in the financial game. They’re recognized and reg ..read more

Amid our dynamic financial ecosystem, the Open Credit Enablement Network (OCEN) stands out as a transformative force for micro, small, and medium enterprises (MSMEs). Delving into OCEN reveals its immense potential and the significant paradigm shift it offers in the realm of MSME lending. This blog offers a synopsis of the advancements within this technology, highlighting its potential to revolutionize lending practices. Introducing OCEN and The Vision Behind the Technology  Sharad Sharma, a co-founder of iSPIRT Foundation, marks the rollout of OCEN. It is a pivotal technological innov ..read more

Overview This article explores the unique compliance requirements that distinguish digital lending for NBFCs. It covers the guidelines applicable to Digital Lending Apps, encompassing regulated entities, lending service providers and financial institutions. Authorization is restricted to RBI-regulated entities or those authorized under relevant laws. IT compliance, document security, and operational changes are highlighted, along with the role of digital lending software in managing regulatory obligations. The article provides a concise overview of the RBI’s 2022 Digital Lending Guidelines ..read more

Central Know Your Customer (CKYC) stands as a beacon in today’s financial realm, offering a transformative approach to customer interactions and operations for financial institutions. This comprehensive guide dives deeper into the intricacies of CKYC, providing readers with a detailed understanding of its importance, advantages, the nuances of its implementation and how can a financial institution register for a CKYC Registry account. Chapter 1 CKYC: The Game Changer for Modern Finance Dive into the transformative power of CKYC in the financial sector. This chapter sheds light on how CKYC ha ..read more

Introduction The importance of CKYC (Central Know Your Customer) in financial institutions cannot be overstated. For any financial institution or business, adhering to regulations and protecting customer interests is paramount. CKYC Registry Fillings, being one of the most significant regulations, is essential to understand. As of March 2023, the CKYC registry boasts more than 70 crore records. Moreover, the CKYC system is more reliable and stable compared to other systems like the Aadhar UIDAI server. However, many financial institutions and lending businesses are still grappling with the co ..read more