Loading…
RBI licensing audits, payment flow compliance, and airtight DPDP privacy models.
0%
Audit compliance with RBI security guidelines
0+
Co-lending and partner integrations structured
0+
Payment gateway and NBFC licenses assisted
0Cr+
Daily transaction volumes under audited policies
Financial Technology (Fintech) and Non-Banking Financial Companies (NBFCs) operate in one of India's most strictly regulated business landscapes. Regulatory compliance with the Reserve Bank of India (RBI) directions, payment aggregator guidelines, co-lending partnerships, and customer data privacy laws are essential to avoid severe operational bans. We help platforms secure licensing, structure co-lending agreements, protect proprietary algorithms, and implement DPDP compliant data protection models.
These are the most critical areas where businesses in the fintech & nbfcs sector face legal exposure:
Securing Payment Aggregator (PA) or NBFC registrations from the RBI requires meeting high net-worth requirements, fit-and-proper director checks, and security audits.
Structuring credit partnerships between Fintech platforms and NBFCs without clear default loss guarantee (FLDG) definitions can violate RBI directions.
Managing customer credit history, bank statements, and personal identity data without strict consent records violates both RBI security guidelines and the DPDP Act 2023.
Defending proprietary credit scoring algorithms and automated underwriting software from copying, given software algorithms are not directly patentable in India.
Unaddressed, these risk factors can lead to revenue loss, regulatory penalties, or competitive disadvantage:
Our structured engagement model ensures nothing falls through the cracks:
Evaluate your business model against RBI PA/PG and NBFC guidelines and manage license applications.
Draft co-lending agreements, FLDG terms, and service agreements between Fintechs and banks.
Map data flows, set up consent management logs, and draft privacy notices for sensitive financial information.
File patents for hardware integrations and register trademarks for financial brands and apps.
Draft app user agreements, payment terms, wallet terms, and cybersecurity policies.
Businesses in the fintech & nbfcs sector must align operations with these key Indian statutes and regulatory standards:
We recommend implementing these key protective legal and IP measures early:
Depending on your model, you may need a Payment Aggregator (PA) license, a Peer-to-Peer (P2P) lending license, or a formal co-lending tie-up with an RBI-registered NBFC.
Fintech platforms handle sensitive personal financial records. You must obtain explicit, consent-based, itemized approvals from users before collecting or sharing any financial or personal data.
Algorithms per se are not patentable under Section 3(k) of Indian patent law. However, if integrated into a hardware system demonstrating technical utility, patenting is possible.
As per the RBI guidelines, default loss guarantees structured between Fintech platforms (LSPs) and regulated lenders (Banks/NBFCs) must not exceed 5% of the total loan portfolio value.
No, platforms acting as Payment Aggregators must route customer funds through an Escrow Account opened with a scheduled commercial bank, operating under strict RBI guidelines.
Under the RBI card-on-file tokenization guidelines, merchants cannot store actual credit/debit card numbers. All card transactions must be processed via encrypted card tokens.