RBI Releases Draft Guidelines For Digital Lending Service Providers:

Why in News? In a bid to further regulate the digital lending ecosystem in India, the Reserve Bank of India (RBI) has released a draft framework to oversee aggregation of loan products by lending service providers (LSPs).
it aims to ensure that the borrowers have prior information about the potential lenders in order to make an informed decision.
Key guidelines:
LSPs will have to provide an accurate picture of all the loan offers available to borrowers from all the willing lenders with whom the LSPs have arrangements
LSPs may adopt any mechanism to ascertain the willingness of the lenders to offer a loan but will have to follow a consistent approach in this regard, which will need to be disclosed suitably on their website
LSPs will have to provide all key information, like the names of the REs extending the loan offer, amount and tenor of loan, annual percentage rate (APR) and other key terms which will enable the borrower to make a fair comparison between various offers
The content displayed by LSPs has to be unbiased and should not directly/ indirectly promote a particular RE, including by use of any practices or deceptive patterns like using dark patterns.
Amid all these, the Indian digital consumer lending market continues to flourish. It is projected to surpass the $720 Bn mark by 2030, representing nearly 55% of the total over $1.3 Tn digital lending market opportunity in the country.