India, April 26 -- In a bid to further regulate the digital lending ecosystem in India, the Reserve Bank of India (RBI) on Friday (April 26) released a draft framework to oversee aggregation of loan products by lending service providers (LSPs).

The central bank has sought feedback on the draft regulatory framework till May 31, 2024.

Citing the rationale for the new framework, the RBI said that it aims to ensure that the borrowers have prior information about the potential lenders in order to make an informed decision.

Under the draft guidelines, 'Digital Lending - Transparency in Aggregation of Loan Products from Multiple Lenders', the RBI has asked the regulated entities (RE) to ensure the following points:

LSPs will have to provide ...