finpeel Answers · India · updated 2026-08-14

Does an LSP need an RBI licence in India?

There is no standalone RBI “LSP licence” solely because a company acts as a Lending Service Provider. An LSP operates for a regulated entity under RBI’s Digital Lending framework, but any other regulated financial activity it performs can require its own authorisation.

The regulated bank or NBFC remains responsible for compliance with the digital-lending rules and for oversight of the LSP.

If the LSP also lends from its own balance sheet, operates payments or provides another regulated service, analyse that separate activity independently.

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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