Glossary
Lending Service Provider (LSP)
RBI's term for agents and platforms that perform lender functions such as sourcing, KYC or servicing on the lender's behalf.
What it means
The RBI's digital lending directions define an LSP as an agent of a regulated lender that carries out one or more functions in customer acquisition, underwriting support, servicing or recovery. Lenders are fully responsible for their LSPs' conduct.
LSPs must disclose the lender's identity, cannot collect funds from borrowers, and must protect borrower data. The framework brings DSAs and digital platforms under the same accountability.
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