The recent announcement by RBI to establish a framework and regulations for facilitating Foreign Lending and Debt Guarantees (FLDG) is a commendable step that will significantly contribute to the expansion of the Digital Lending industry. Many Digital Lending companies encounter difficulties in securing local debt capital and managing liability issues. The introduction of FLDG not only encourages banks to offer liquidity but also enables them to effectively mitigate risks through FLDG protection. This development will undoubtedly enhance the collaboration between banks and fintech/digital lending firms, bolstering their partnerships and overall stability.