finpeel Answers · India · updated 2026-08-14

Can a fintech partner with an NBFC instead of becoming a lender in India?

Yes. A fintech can act as a Lending Service Provider or technology/service partner to a regulated bank or NBFC, provided the regulated entity remains responsible for the lending activity and the arrangement complies with RBI’s Digital Lending Directions.

This is not a licence exemption if the fintech itself becomes the lender in substance. The regulated entity must retain the roles and responsibilities RBI assigns to it.

Contracts, borrower disclosures, fund flows, data access and grievance handling should reflect the actual RE–LSP relationship.

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.

Read on finpeel.com · All answers · Stress-test an NBFC partnership