The RBI has accepted some recommendations made by the working group on digital lending (WGDL), effective immediately.

Here are a few of the key recommendations:

* Loan disbursals and repayments can only happen between the bank accounts of borrowers and an RBI-regulated entity without any pass-through.

* Fees/charges relating to loan disbursals must be paid to the loan service providers by the RBI-regulated entity, and not the borrower.

* Companies have to disclose everything to borrowers before they sign a loan.

* APR (annual percentage rate or the interest paid on loans per year) have to be disclosed to customers.

* Companies cannot increase users’ credit limits without their explicit consent.