This toolkit presents a step-by-step roadmap that mirrors the real-world compliance journey of a lending fintech entity in India. It is designed to be both explanatory (for founders new to the regulatory environment) and actionable (for operators building compliance into their systems). Each step links to a dedicated page that expands into detailed guidance, practical checklists, and reference templates.
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⚠️ This roadmap is illustrative and suggestive, created for educational purposes. Regulatory requirements here are updated as of [October, 2025]. Entities must consult RBI circulars, MCA notifications, SEBI/IRDAI guidelines, and legal advisors before implementation. Future regulatory changes may alter or add to the steps outlined here.
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The first step is to determine the appropriate operational structure for your lending business. Founders must decide whether to function as an LSP partnering with NBFCs, or to apply for NBFC registration and lend independently.
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Once the model is chosen, start-ups must complete the statutory and regulatory registrations necessary to operate lawfully. This includes basic MCA, GST, and Shops & Establishment registrations for LSPs, or an RBI application through the portal for NBFCs.
Step 2: Core Licensing & Registration
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At this stage, entities must align with RBI’s Digital Lending Directions,2025, which mandate direct borrower-to-NBFC fund flows, standard disclosures such as APR, a cooling-off period, and a dedicated grievance redressal framework.
Step 3: RBI’s Digital Lending Directions
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Founders must establish robust systems for customer due diligence, identity verification, and transaction monitoring, consistent with RBI’s KYC Master Directions and the Prevention of Money Laundering Act (PMLA).
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Every NBFC is required to adopt a Fair Practices Code, and LSPs must adhere to the same standards contractually. This step ensures transparent pricing, ethical collection practices, and protection against borrower harassment or mis-selling.
Step 5: Fair Lending & Customer Protection
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Entities must comply with the IT Act and CERT-In mandates while preparing for the forthcoming DPDP Act. This stage covers data security, Aadhaar usage restrictions, vendor contracts, and incident reporting protocols.
Step 6 - Data Protection & Technology Compliance
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The final stage of the journey involves continuous obligations such as supervisory returns, statutory audits, RBI inspections (for NBFCs), ongoing reporting to partner NBFCs (for LSPs), and tax and MCA filings for all.
Step 7 - Reporting & Ongoing Compliance
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Beyond regulatory compliance, founders in the lending ecosystem must also weigh strategic considerations that can shape decisions. From choosing the right business model and technology stack to building customer trust, managing investor expectations, and forging resilient partnerships, these factors often determine sustainability as much as compliance does. This section highlights key non-regulatory insights that fintech founders should keep in mind while building in the lending space.
Considerations to Keep in Mind
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