The Digital Lenders Association of India (DLAI) and the Small Industries Development Bank of India (SIDBI) have joined forces to promote digital lending adoption and develop consumer protection policies. SIDBI, a key MSME-focused financial institution, is considering offering its credit products to micro-enterprises through DLAI member fintech firms. The Memorandum of Understanding (MoU) aims to expedite digital lending partnerships, including collaborations between banks and lending service providers, co-lending ventures, and developing model partnership agreements.DLAI updated its code of conduct to align with RBI's Digital Lending Guidelines, emphasizing responsible lending, transparency, fair debt collection, data privacy, security, and regulatory compliance. The collaboration includes initiatives related to client protection, grievance redressal, financial literacy, research, and publications, promoting responsible lending and innovation in the MSME sector.