back Back

Cashfree Payments launches new lending solution

By Leandra Monteiro

October 27, 2022

  • API Banking
  • Cashfree Payments
  • co-lending

Cashfree Payments,Cashfree Payments has rolled out its Disbursement and Collections solution for Lending, to enable NBFCs and their partner LSPs to comply with the new Digital Lending guidelines. Cashfree Payments will facilitate both digital lending and co-lending use cases through their solution.

The RBI has prescribed that all fund-flows relating to loan disbursement and repayment must be directly between the bank account of the lender and borrower, without any pass-through or pool account of any third party. However, there are limited carve-outs to this general rule for: (i) co-lending transactions entered into by banks and NBFCs in accordance with the existing regulatory instructions issued by the RBI; (ii) disbursements covered exclusively under the statutory or regulatory mandate of the RBI or any other regulator; and (iii) disbursements to third parties pursuant to specific end-uses of the loans.

Cashfree Payments’ solution will facilitate the creation of lender escrows, seamless loan disbursements direct to borrowers, managing multiple LSP partnerships, efficient reconciliation, borrower identity & bank account verification. Cashfree Payments also enables repayments through e-NACH, UPI AutoPay in compliance with the guidelines.

Akash Sinha, Co-founder and CEO of Cashfree Payments said, “The digital lending and co-lending segments in India have grown very rapidly driven by the high fintech adoption in the country. With the exponential growth, there is a strong need to enable compliant and scalable solutions for loan disbursals, loan repayment, KYC verification among other things. We are delighted to announce that we are now offering our disbursal and repayment solutions, compliant to the new Digital Lending Guidelines. As a front-runner in the API Banking & Payments space, we have strived to provide this solution at a critical juncture to ensure continuity and growth for our merchants while keeping compliance at center stage.’

Previous Article

October 27, 2022

Cellulant and Mastercard partner to empower consumers across Africa to shop and pay online

Read More
Next Article

October 27, 2022

Cross River expands card issuing with American Express

Read More

IBSi Daily News Analysis


February 23, 2024

API Banking

Regulated firms battle surge in financial crime attempts, research reveals

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News


Ebury and Nium team to offer cross-border payments in Brazil

Read More


MultiPay teams up with to launch Pay By Bank

Read More


UNIPaaS unveils AI payment assistant solution for SaaS platforms

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q4 2023
Know More
Wealth Management & Private Banking Systems Report Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
Get your copy now! IBSi Sales League Table 2023