Bangalore, 27 Oct 2022

Cashfree Payments launches lending solution to help NBFCs & LSPs to comply with new Digital Lending guidelines

Disbursement & Repayment Solutions to help lenders and Loan Service Providers to become RBI compliant with minimal changes to their workflow Facilitates both digital lending and co-lending use cases

Bengaluru, 28th October 2022: Cashfree Payments, India’s leading payments and API banking
solutions company, has rolled out their 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 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.’


With over 50% market share among payment processors, Cashfree Payments today leads the
way in bulk disbursals in India with its product Payouts. Recently, India’s largest lender, SBI
invested in Cashfree Payments underscoring the company’s role in building a robust payments
ecosystem. Cashfree Payments works closely with all leading banks to build the core payments
and banking infrastructure that powers the company’s products and is also integrated with major
platforms such as Shopify, Wix, Paypal, Amazon Pay, Paytm and Google Pay. Apart from India,
Cashfree Payments products are used in eight other countries including the USA, Canada and
UAE.


About Cashfree Payments

Cashfree Payments is a leading payment and API banking solutions company. It provides full-
stack payments solutions enabling businesses in India to collect payments and make payouts via

all available methods with simple integration. Cashfree Payments’ offerings include an advanced
and easy way to integrate payment gateways, a split payment solution for marketplaces, bank
account verification API, and Auto Collect — a virtual account solution to match inbound payments
to customers. Founded by IIIT Hyderabad alumnus Akash Sinha and IIT Kharagpur graduate
Reeju Datta, http://www.cashfree.com is among the leading payment service providers in India
processing transactions worth USD 40 Billion annually. It has leveraged technology to lead
payment disbursals in India with more than 50% market share among payment processors.
Cashfree Payments enables more than 1,50,000 businesses with payment collections, vendor
payouts, wage payouts, bulk refunds, expense reimbursements, loyalty and rewards. Apart from
India, Cashfree Payments products are used in eight other countries including the USA, Canada,
and UAE. Cashfree Payments is backed by Silicon Valley investor Y Combinator, Apis Partners,
State Bank of India (SBI), and was incubated by PayPal.

Media Contacts:
Swagata Gupta | swagata.gupta@cashfree.com | 9820088951
Sinoj Sadanandan | sinoj.sadanandan@cashfree.com | 9619375635
Niharika Saluja | niharika.saluja@adfactorspr.com | 8097341147