SIDBI signs pact with DLAI to boost fintech sector

Published : 28 September 2023
Updated : 24 May 2024
SIDBI signs pact with DLAI to boost fintech sector

In order to advance the nation's fintech industry, the Small Industries Development Bank of India (SIDBI) said on Saturday that it had signed a contract with the Digital Lenders Association of India (DLAI). SIDBI and DLAI have agreed to this in a Memorandum of Understanding.

According to a statement, the MoU calls for cooperation with SIDBI to create standard protocols to hasten the implementation of digital lending partnerships, such as alliances between banks and Lending Service Providers (LSPs), co-lending collaborations, and others.

SIDBI will also investigate Assignment and Securitization transactions and offer resource support to qualifying DLAI member NBFCs. 

"We are happy to work with the Industry on other important aspects like standard protocols, customer protection, and grievance redressal, among others to facilitate faster adoption of digital lending," stated Sivasubramanian Ramann, CMD of SIDBI.

In line with its business plan, SIDBI is reaching out to micro businesses directly through partnerships and digital technology, and it may also look at making its loan products available through DLAI members.

According to the agreement, SIDBI and DLAI would look at joint ventures for their "Prayaas" Scheme for unregistered businesses, co-lending, GST Sahay, Express loans, green finance, and other direct credit schemes. This agreement marks a significant development in India's fintech industry's efforts to expand its contribution to financing the MSME sector.