RBI issues new norms for LSPs to facilitate informed decisions by borrowers
Mumbai, April 26 -- The Reserve Bank of India (RBI) on Friday said that lending service providers (LSPs), operating as representatives of banks should disclose all available loan offers to borrowers to facilitate informed decision-making.
Many LSPs offer aggregation services for various loan products.
An LSP is an agent of a regulated entity (RE) that executes one or more functions of the lender, such as customer acquisition, underwriting support, pricing support, servicing, monitoring, or recovery of specific loans or loan portfolios on behalf of REs, in accordance with existing outsourcing guidelines.
In December of the previous year, the RBI disclosed its plans to introduce a draft framework stipulating that connected lending, which...
Click here to read full article from source
To read the full article or to get the complete feed from this publication, please
Contact Us.