RazorpayX launches its own digital lending platform for NBFCs ahead of RBI's 30 Nov deadline

As the Reserve Bank of India’s (RBI) deadline for adoption of digital lending guidelines is coming closer, it has made lending merchants rethink their payment infrastructure and the ways that they used to transfer their money. Business banking platform Razorpay has come up with its own digital lending solution titled ‘RazorpayX Digital Lending 2.0’. The platform will be helpful in the smooth dispersal of funds between borrowers and regulated entities. As mentioned in a statement by the payment solution platform, RazorpayX Digital Lending 2.0 is a complete digital lending solution for non-banking financial companies (NBFCs) and fintech firms, which will help in solving all of their problems concerning money transfer and fund disbursement. “RazorpayX’s Digital Lending 2.0 is a full-stack lending suite that solves all of these problems. It not only helps you solve for your today, but also makes it easy for you to scale effortlessly tomorrow”, the statement read. It also added the benefits this move will bring. According to Razorpay, the platform will “automate direct money transfers between the lender’s and borrower’s account; Manage multiple fintech partners using a single current account; Auto-reconcile millions of transactions with their transaction status.” With the help of the new platform, the company will also enable co-lending models and involve multiple lending partners by automating direct money transfers between the Regulated Entity (NBFC)’s account and the borrower’s account, in line with RBI’s digital lending guidelines. The platform also claims that RazorpayX will integrate with all preferred banking partners and will further bring together the Payment Gateway, banks, and Fintech / NBFC partners all on the same platform. RBI’s digital lending guidelines Notably, NBFCs have been transferring money into the virtual accounts and pool accounts of their fintech partners, which would then be disbursed to their borrowers. Similarly, for repayments, the money was received in the payment gateway and was then transferred into a virtual or pool account before being transferred to the NBFC’s current account. However, this would change in line with the digital lending guidelines by the Reserve Bank of India issued on 2 September 2022. As per the guidelines, loan disbursals and repayments have been mandated to happen directly between the regulated entities (NBFC)’s accounts and the borrower’s accounts. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.