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AI Underwriting Meets Regulation: Can NBFCs Use Data Without Crossing RBI’s Line?

AI underwriting is transforming NBFC lending, but regulation is catching up fast. This guide breaks down RBI expectations, data protection rules, fintech risks, and how NBFCs can use AI responsibly while staying compliant, transparent, and scalable.

What You’ll Find Inside:

  • How RBI regulation is reshaping AI underwriting
  • Why explainability matters more than accuracy
  • Key updates in digital lending guidelines
  • Impact of the Data Protection Act on underwriting
  • Risks in NBFC–fintech partnerships
  • The evolving role of alternative data
  • How fairness and bias are entering compliance
  • Practical rules for building regulator-ready AI models
  • How NBFC Advisory supports compliant AI adoption