Fintech is one of India's most active sectors, but also one of the most regulated. Whether you are building a lending app for an NBFC, a payments product or a wealth platform, regulatory requirements shape the product.
Know your regulator
Depending on your product, RBI, SEBI, IRDAI or other authorities may set rules. Work with legal and compliance experts before finalising product design. This article is not legal advice.
Digital lending considerations
RBI's digital lending guidelines set out expectations on loan disbursal and repayment flows, disclosure of costs through a key fact statement, data collection and grievance redressal. Product flows should be designed around these requirements.
KYC and verification
Use licensed providers for KYC, video KYC and verification. Store only the data you need and protect it carefully.
Security
- Strong encryption for data in transit and at rest
- Secure authentication and session handling
- Regular security testing
- Detailed audit logs
Data and consent
Collect user data only with consent and for stated purposes. Account Aggregator frameworks enable consent-based sharing of financial data.
Transparency
Show fees, interest rates and terms clearly. Transparency builds trust and reduces complaints.
FAQs
Can startups build lending apps?
Lending typically requires partnership with or licensing as a regulated entity.
Which tech stack is best?
Java, Node.js and Python are all common; choose based on team expertise and scale.
How important is security testing?
Essential, and often expected by partners and regulators.
