The Consent Template CT035, finalized by the Lending Use Case Council, sets the upper bounds for monitoring a borrower’s account for collection purposes, only in case of default on the part of the borrower.
Please note that this template does not include monitoring for the purpose of risk assessment, which is available under CT003. Lenders wanting to take consent for the purpose of monitoring loans irrespective of the default status, need to take a separate consent for monitoring, as given in CT003.
The following definition of Default has been concluded by the Council Members as below:
Installment/EMI/Payable amount remains due more than one day from the due date.
| Consent Template Information / Attributes | Description / Upperbounds |
|---|---|
| Consent Template ID | CT035 |
| Status | Active |
| Use Case Category | Account Monitoring |
| Use case | Monitoring a borrower’s account for collection purposes, only in case of default |
| License types considered | Bank, NBFC, HFC |
| Purpose Text (for customers) | To monitor a borrower’s accounts for loan collection, applicable only in case of loans where Installment/EMI/payable amount is due more than one day from the due date |
| Purpose Text (as per ReBIT) | Explicit consent for monitoring of the accounts |
| Purpose Code | 104 |
| Purpose Code Category Name | Financial Reporting |
| FI Types | Deposit |
| Consent Types | Summary |
| Fetch-type | Periodic |
| Maximum Frequency | 1 per day |
| Maximum FI Data Range | 1 day |
| Maximum Consent expiry | Coterminous with loan tenure |
| Maximum Data Life | 1 Month |
| Last published on: | 17th May 2024 |
Please refer to Code of Conduct PC004 that elaborates on the need for separate consents for different purposes and illustrates the distinction in loan underwriting and loan monitoring purposes.
Please note that the parameters of the individual consent templates in the Consent Template Library represent upper bounds for the respective use cases, as decided in the relevant User Councils. The parameters in the consent templates should be treated by participant(s) as outer limit(s) and not be construed as legal advice in any manner. Participants are encouraged to review their use case(s) and ensure compliance with applicable laws, including the RBI Master Directions on NBFC-AA and the DPDP Act.
Sahamati will publish additional consent templates as the AA ecosystem evolves based on discussions in the relevant Use Case Councils and the Fair Use Committee. Existing consent templates may also be revised based on statutory and regulatory guidance, including the DPDP Act and the Rules issued thereunder.
