Module: General Practice
Q46: Scenario: An NBFC has a total digital loan portfolio of ₹100 Crore sourced through a specific Fintech partner. They have a Default Loss Guarantee (DLG) arrangement. If the actual defaults in this portfolio amount to ₹8 Crore, what is the maximum amount the Fintech partner can legally reimburse the NBFC under the current RBI guidelines?
✅ Correct Answer: C
🎯 Quick Answer:
₹5 Crore.The Calculation: 1. Portfolio Size: ₹100 Crore.
2. Regulatory Cap: 5% of the Portfolio Amount = 0.05 * 100 = ₹5 Crore.
3. Actual Default: ₹8 Crore.
The Outcome: Even though the default is ₹8 Crore, the Fintech (Lending Service Provider) can only pay up to the capped amount of ₹5 Crore.
The Impact: The remaining loss of ₹3 Crore (₹8 Crore - ₹5 Crore) must be absorbed by the NBFC.
This forces the NBFC to be careful about who they partner with, as they cannot offload 100% of the risk.