Digital Lending Application – Regulatory Compliance

Digital Lending – Regulatory Coverage (rbi Aligned)

Digital Lending Application – Regulatory Compliance Coverage (India / RBI)

This document maps Regulatory Requirement → Platform Capability → Microservices / Controls → KPIs & Audit Evidence.

1. RBI Digital Lending Guidelines (2022–2023)

Regulatory Expectations

• Disbursement & repayment only between borrower and Regulated Entity (RE)

• Transparent disclosure of APR, fees, tenure

• Explicit borrower consent

• No hidden charges or misleading UI

Platform Capabilities

• Digital Key Fact Statement (KFS)

• Consent lifecycle management

• Fully auditable borrower journey

Microservices / Controls

• Loan Origination Service – KFS generation, loan terms locking

• Consent Service – capture, versioning, revocation

• Disbursement Service – RE-only fund flow validation

• Audit Log Service – immutable logs

KPIs & Evidence

• % loans with valid KFS (target: 100%)

• Consent coverage & revocation audit

• RBI audit trail screenshots

2. KYC & AML Compliance (RBI KYC Master Directions)

Regulatory Expectations

• Customer Identification & Verification

• Sanctions, PEP screening

• Ongoing monitoring

Platform Capabilities

• e-KYC / Video KYC

• AML screening & alerts

• Case management

Microservices / Controls

• KYC Service – Aadhaar/PAN/Video KYC

• AML Service – sanctions & transaction monitoring

• Manual Review Service – exception handling

KPIs & Evidence

• KYC success rate

• AML false positives

• Time to complete compliant onboarding

3. Data Privacy, Consent & Localization

Regulations

• RBI Data Localization

• DPDP Act (India)

• IT Act

Platform Capabilities

• Explicit consent-based data usage

• India-only data residency

• Data masking & encryption

Microservices / Controls

• Consent Service – purpose-based consent

• Data Security Layer – encryption, tokenization

• Access Control (IAM) – RBAC, least privilege

KPIs & Evidence

• % data stored in India

• Access violations (target: zero)

• Consent audit logs

4. Credit, Risk & Fair Lending

Regulatory Expectations

• Explainable decisions

• No bias or discrimination

• Human-in-loop for edge cases

Platform Capabilities

• Explainable ML models

• Confidence thresholds

• Manual override

Microservices / Controls

• Credit Scoring Service – score + reason codes

• Model Governance Service – approval & validation

• Manual Review Workflow

KPIs & Evidence

• Model accuracy & stability

• Bias & fairness metrics

• Override percentage

5. Collections & Customer Protection

Regulatory Expectations

• Fair collection practices

• Grievance redressal

• Ombudsman escalation

Platform Capabilities

• RBI-compliant collections

• Complaint tracking & SLA

Microservices / Controls

• Collections Service – rule-based outreach

• Grievance Service – ticketing & escalation

KPIs & Evidence

• Complaint TAT

• Collection-related complaints

• RBI escalations (zero tolerance)

6. Cyber Security, Audit & Resilience

Regulations

• RBI Cyber Security Framework

• SOC2 / ISO 27001

Platform Capabilities

• Secure-by-design architecture

• DR & BCP readiness

Microservices / Controls

• IAM Service – RBAC, MFA

• Security Monitoring (SIEM)

• DR & Backup Automation

KPIs & Evidence

• P1/P2 incidents

• MTTR

• Pen-test & VA reports

7. Typical RBI / Internal Audit Questions & Strong Answers

Q: How do you ensure consent compliance?A: Through a dedicated consent service with versioned consent, purpose tagging, revocation, and immutable audit logs.

Q: How do you explain automated credit decisions?A: All models generate reason codes and fall back to manual review below confidence thresholds.

Q: How do you prevent LSP fund misuse?A: Disbursement flows are technically restricted to RE-controlled accounts only.

"Our digital lending platform embeds RBI compliance by design—covering transparent disclosures, consent management, KYC/AML, data privacy, explainable credit decisions, compliant collections, and strong audit trails. Regulatory controls are enforced through dedicated microservices, measurable KPIs, and continuous audit readiness."

✅ Regulation → Capability → Microservice → Control → KPI✅ RBI Digital Lending, KYC/AML, Data Privacy, Fair Lending, Collections✅ Security, audit readiness & DR✅

regulation → service → control → KPI → audit evidence

Architecture leadership angle

“We don’t treat compliance as a checklist. Each RBI requirement is mapped to a platform capability and enforced via dedicated microservices with measurable KPIs and audit trails.”

1-Slide Regulatory Architecture Diagram

Slide Title

Digital Lending – Regulatory-by-Design Architecture (RBI Aligned)

Layer 1: Customer & Channels (Top)

• Mobile App / Web App

• Partner / LSP Interfaces

Regulatory Controls

• Mandatory disclosures (APR, fees)

• Explicit consent capture

• No dark patterns

Layer 2: Compliance & Control Services ferentiator)

Core Differentiator

• Consent Management Service

  • Purpose-based consent

  • Versioning & revocation

• KYC / AML Service

  • e-KYC, Video KYC

  • Sanctions, PEP screening

• Credit & Risk Engine

  • Explainable scorecards

  • Confidence threshold + human-in-loop

• Collections & Grievance Service

  • RBI-compliant outreach

  • Ombudsman escalation

• Audit & Logging Service

  • Immutable audit trails

    
    

Layer 3: Lending Core & Integrations

• Loan Origination

• Disbursement (RE-only accounts)

• Repayment

• Credit Bureau

• Payment Gateways

Regulatory Enforcement

• No LSP fund flow

• Full transaction traceability

Layer 4: Data, Security & Governance (Foundation)

• Data localization (India-only)

• Encryption & tokenization

• IAM, RBAC, MFA

• SIEM, monitoring

• DR & BCP

Bottom Banner (Key Message)

“Every RBI requirement is enforced by architecture, not policy documents.”

1️⃣ 5-Slide PPT Outline

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Slide 1 – Problem Statement

Title: Digital Lending Challenges in a Regulated World

Key Points

• Increasing RBI scrutiny on digital lending

• APR, consent, LSP controls becoming non-negotiable

• Audit risk slowing business growth

• AI adoption limited due to explainability concerns

Bottom Line

Compliance cannot be an afterthought anymore.

Slide 2 – Our Solution

Title: Regulatory-by-Design Digital Lending Platform

Key Points

• Built ground-up aligned to RBI Digital Lending Guidelines

• Compliance enforced by architecture, not processes

• Designed for Banks, NBFCs, and FinTech partnerships

One-Line Value

Faster growth with regulator confidence.

Slide 3 – Regulatory Architecture (Main Slide)

Title: RBI-Compliant Digital Lending Architecture

Boxes + Arrows (Describe visually)

Top:Customer Apps / Partner (LSP) Apps→ Explicit APR & fee disclosures

Middle (Highlighted):Compliance Control Layer

• Consent Management

• KYC / AML

• Explainable Credit Engine

• Collections & Grievance

• Audit Logs

Below:Lending Core (RE Controlled)

• Loan Origination

• Credit Approval

• Disbursement & Repayment👉 Funds flow only Borrower ↔ RE

Bottom:Security & Governance

• Data Localization (India)

• IAM / RBAC

• Encryption, DR, SIEM

Footer

“Every RBI rule is enforced technically.”

Slide 4 – Compliance in Action

Title: How We Meet RBI Expectations

APR & Disclosures

• Explicit UI display

• RBI Key Fact Statement

• Mandatory borrower acknowledgment

Consent

• Purpose-based

• Versioned & revocable

• Fully auditable

AI with Guardrails

• Explainable models

• Confidence thresholds

• Human-in-loop

Slide 5 – Business Value

Title: Why Clients Choose This Platform

Outcomes

• 30–40% faster compliance approvals

• Reduced audit findings

• Faster go-live

• Lower regulatory & reputational risk

• Scales safely with partners & products

Closing Line

Compliance becomes a growth enabler.

2️⃣

“Most digital lending platforms struggle because compliance is treated as a checklist. Our platform is built regulatory-by-design, fully aligned with RBI digital lending guidelines. We enforce APR disclosures, consent management, KYC/AML, explainable credit decisions, and controlled fund flows directly through architecture. This reduces audit risk, accelerates regulatory approvals, and allows banks and NBFCs to scale digital lending confidently.”

3️⃣ Presales War Stories

War Story 1 – Bank

• Client worried about RBI audits

• Chose us due to built-in compliance controls

• Result: Faster internal approval, zero critical audit findings

Line to Say

“Compliance became the reason we won the deal.”

War Story 2 – NBFC / FinTech

• Rapid growth but regulatory risk

• Centralized consent, explainable credit, LSP control

• Result: Faster scale without regulatory violations

Line

“We enabled growth without crossing RBI red lines.”

4️⃣ Regulator / Client Cross-Questions

Q: Is APR just a disclaimer on UI?A:

“No. The UI displays it, but backend services block loan acceptance unless disclosures are acknowledged. It’s technically enforced and auditable.”

Q: How do you ensure LSPs don’t misuse funds?A:

“Disbursement and repayment APIs are restricted to RE-controlled accounts only. LSPs never touch funds.”

Q: Are credit decisions fully automated?A:

“Only above confidence thresholds. Exceptions go through manual review to ensure fairness.”

Q: How do you handle audits?A:

“Auditors can trace every loan end-to-end—from consent to disbursement—via immutable logs.”

5️⃣ Tailored Messaging by Client Type

Bank

“Built for audit scrutiny, long-term scale, and zero regulatory surprises.”

NBFC

“Regulatory compliance without slowing down growth.”

FinTech / LSP

“Enables compliant partnerships with banks and NBFCs.”

6️⃣

“We don’t just deliver a digital lending platform — we deliver regulator confidence, faster go-to-market, and sustainable growth.”