Regulatory Alerts2024-05-23
Added · Updated
Circular 14: Requirement for Self-Assessment Declaration for NBFC Digital Lending App Whitelisting
Non-Banking Finance Companies engaged in digital lending must submit a self-assessment declaration and supporting documents to the Securities and Exchange Commission of Pakistan to whitelist their Digital Lending Apps. The declaration requires compliance with specific UI/UX standards, including mandatory disclosure of access permissions, APR, and loan terms, while prohibiting the use of government logos or unauthorized data access. For digital nano-lending, the rules cap the aggregate loan amount at Rs. 100,000, limit tenors to 90 days, prohibit markup compounding, and restrict total recovery to the principal amount. Additionally, lenders must implement robust cybersecurity measures, such as multi-factor authentication, data encryption, and local data residency, and provide a cooling-off period for borrowers.