finpeel Answers · India · updated 2026-08-14
An LSP should not separately charge the borrower fees that are payable by the regulated entity to the LSP under the digital-lending arrangement. Borrower charges must be imposed and disclosed within the regulated lender’s compliant loan framework.
RBI’s model keeps the regulated entity accountable for the cost structure and prevents LSP economics from being hidden outside the loan terms.
If a fintech provides a genuinely separate non-lending service, analyse that fee independently rather than labelling an LSP fee as a customer charge.
Regulator: Reserve Bank of India (RBI)
Primary sources: RBI — Digital Lending Guidelines / FAQs · RBI — Digital Lending Directions, 2025
Directional — not legal advice. Verify with the regulator before committing.
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