RBI gives green signal to first loss default guarantee (FLDG) framework; here's how will fintech, banks, NBFCs benefit3 min read 08 Jun 2023, 10:48 PM IST
RBI has approved the First Loss Default Guarantee (FLDG) programme, which allows fintechs to partner with banks and NBFCs. This move is expected to strengthen the digital lending ecosystem and is seen as positive for data-tech NBFCs and fintechs.
The Reserve Bank of India (RBI) has granted its approval for First Loss Default Guarantee (FLDG) framework. The announcement was made during second bi-monthly monetary policy outcomes on Thursday. Popularly, FLDG scheme allows Indian fintechs to partner with banks and NBFCs. This decision is seen as a big positive for data-tech NBFCs and fintechs. Further, the move will strengthen the digital lending ecosystem.