The Reserve Bank of India will frame a regulatory architecture for digital lending platforms soon as there have been increasing cases of alleged suicides of borrowers due to harassment by a few of the operators of digital lending apps,
many of which are unauthorised and illegal.
RBI Governor Shaktikanta Das has said, “I think very soon we will be coming out with a broad regulatory architecture, which should be able to address the challenges that we are confronted with regard to lending through digital platforms, many of which are unauthorised, unregistered and, should I say, illegal,” Das said while delivering a lecture on – Indian Businesses (Past, Present and Future).
Das said, most of the digital lending apps are not registered with the central bank and operate by themselves, he told reporters after announcing the monetary policy. Whenever it gets a complaint from any customer, the central bank directs customers of such unregistered apps to approach the local police, which will conduct an investigation and take necessary action on the issue
Further, Das said, “It is my humble request to all those using such apps to first check if the app is RBI registered or not. If the app is RBI registered, the central bank will act immediately in case of any misdoing, I assure you.” The central bank has been pushing for improvements in the governance and compliance culture of its regulated entities like banks, NBFCs and other financial entities through a series of measures, he added.