RBI · Digital Lending

DL-05: Key Facts Statement and APR

Paragraph-level professional implementation page for Digital Lending.

Digital LendingDL-05Banking Regulation Act/RBI Act depending lender; IT, PMLA and data overlays

Finin2min Summary — in 2 Minutes

DL-05 — Key Facts Statement and APR. Deliver a readable KFS before contract; include all-in APR, charges and repayment schedule.

Official source and legal ownership

Instrument ownerBanking Regulation Act/RBI Act depending lender; IT, PMLA and data overlays

Source statusCURRENT OFFICIAL SOURCE GATEWAY

Review date2026-07-19

Primary sourceReserve Bank of India (Digital Lending) Directions, 2025

Paragraph-wise Finin2min interpretation

Legal trigger

Deliver a readable KFS before contract; include all-in APR, charges and repayment schedule.

Control owner

Business identifies the event; Compliance confirms law; Operations/Technology executes; Independent review tests evidence.

Evidence

Official source snapshot, policy/SOP, system rule, customer/transaction record, maker-checker log, exception approval and regulatory acknowledgement.

Failure consequence

Customer harm, reporting defect, prudential misstatement, supervisory observation, monetary penalty, restriction or remediation.

Practical example

Scenario: An exception arises under Key Facts Statement and APR. The owner records the trigger, regulated entity, paragraph/reference DL-05, affected customer or exposure, applicable threshold, approval and system evidence. Compliance then tests the result against the official source rather than relying on a generic policy statement.

Implementation and evidence controls

Freeze the applicable entity class, product, transaction date and official instrument version.
Map every control to its legal owner, enabling provision, responsible function, evidence and escalation route.
Retain Board/committee approval, policy version, system configuration, maker-checker evidence, exception approval and regulatory filing acknowledgement.
Re-test the control after an amendment, product change, outsourcing change, merger, customer-risk reclassification or supervisory observation.

Practical Q&A

What is the first test for Key Facts Statement and APR?

Confirm entity, product, event date, official paragraph and any stated exception.

Can a portal or system acceptance cure a legal defect?

No. Technical processing does not override the substantive Direction.

What should be retained for review?

The official source version, legal mapping, calculation or decision record, approvals, communications and filing evidence.