As per the Reserve Bank of India's Guidelines on Digital Lending issued in 2022, which of the following practices is PROHIBITED?

The Reserve Bank of India's Guidelines on Digital Lending, issued in August 2022, require that lending by regulated entities be undertaken only through their own lending channels or through lending service providers engaged by them, and expressly prohibit lending service providers from extending credit on their own books. The guidelines further prescribe a Key Fact Statement disclosing the all-in-cost of the loan, the prohibition of automatic escalation of credit limits without the borrower's explicit consent, a cooling-off period for borrowers, and measures to prevent the misuse of customer data. Loans disbursed directly by an LSP out of its own funds would bypass the regulated credit framework altogether and are prohibited. Disclosure of the all-in-cost, institutional lending, KYC verification and cooling-off arrangements are all compliant requirements rather than prohibitions.