Jubilee Post News & Views
The Digital Lenders Association of India (DLAI) and the Small Industries Development Bank of India (SIDBI) recently announced that they have formally signed an MoU to propel the growth of the fintech sector in the country.
Mr. Sivasubramanian Ramann, CMD SIDBI, also released DLAI’s latest version of the Industry Code of Conduct (CoC) document at the UnConclave 2023 organised by DLAI in Goa The event was attended by the top 100 executives of the Indian fintech industry.
The new version of CoC is structured around the RBI’s Digital Lending Guidelines and takes into account important aspects such as Responsible Lending, Transparency, Fair Debt Collection Practices, Data Privacy and Security, Compliance with Regulatory Framework etc.
Speaking at the occasion, Mr. Ramann, said “High growth in Indian Fintech sector has been driven by best in class Public Digital Infrastructure (PDI) and matured policy support from regulator.
It’s for the industry to leverage the Digital lending guidelines of RBI to develop responsible lending practices and the code of conduct prepared by DLAI is an important first step in this direction.
We are happy to work with the Industry on other important aspects like standard protocols, customer protection, grievance redressal, etc. to facilitate faster adoption of digital lending. As a part of its business strategy SIDBI is using digital technology and partnerships to directly reach out micro enterprises. SIDBI will explore offering its credit products through the DLAI members.”
The MOU with SIDBI, is to establish a framework for collaboration between DLAI, the members of DLAI and SIDBI.
Speaking at the MoU announcement, Mr. Jatinder Handoo, CEO, DLAI, shared, “SIDBI is the apex Institution for development of MSME sector in the country. This partnership signifies an important step in India’s fintech journey for enhancing their role in financing to MSME sector. Both organizations are committed to leveraging our combined expertise and resources to pit the sector on high growth trajectory with responsible lending with innovation enbedded therein.”
