RBI issues FAQs on default loss guarantee in digital lending
While issuing the guidelines in June 2023, the RBI had said that banks must ensure that the total amount of DLG cover on any outstanding portfolio -- which is specified upfront -- shall not exceed five per cent of the amount of that loan portfolio.
In its list of FAQs, the RBI said the portfolio for which DLG can be offered needs to consist of identifiable and measurable loan assets. Image: Reuters