A working committee of the RBI has recommended that digital lenders be subjected to more stringent regulations
The recommendations include putting Digital Lending Apps through a verification procedure by a nodal agency that will be established in cooperation with stakeholders and establishing a Self-Regulatory Organization (SRO) that will cover all participants in the digital lending ecosystem.
The Reserve Bank of India (RBI) has proposed stiffer regulations on digital lenders through a working committee. The recommendations include putting Digital Lending Apps through a verification procedure by a nodal agency that will be established in cooperation with stakeholders and establishing a Self-Regulatory Organization (SRO) that will cover all participants in the digital lending ecosystem.
On January 13, 2021, the RBI established a working group on digital lending, which includes lending through online platforms and mobile apps, under the chairmanship of Jayant Kumar Dash, RBI Executive Director.
The working group was formed in response to concerns about corporate conduct and client protection that have arisen as a result of the recent surge in digital lending activity.
