The Reserve Bank of India (RBI) cautions small businesses and individuals against taking loans through unauthorised digital lending apps. It has issued notification taking into consideration the reports with respect to such borrowers getting bother of unauthorised digital lending platforms/Mobile Apps on promises of getting loans in quick and hassle-free manner.
RBI has advised borrowers to verify the antecedents of the lenders offering loans online or through mobile apps.
As per RBI, it has also received several reports of individuals and small businesses getting bother to such digital platforms that charge high rates of interest or demand additional hidden charges from borrowers.
The reports also include adoption of unacceptable and high-handed recovery methods and misuse of agreements to access data from the mobile phones of borrowers.
Additionally, the RBI has also made it mandatory for all digital lending platforms used by RBI-registered banks and NBFCs to disclose the names of the bank and NBFC directly to the consumers.