Reserve Bank of Indiahas set up a working group to monitor digital loansin the countryside.
- The group will study the scope of
digital loanin India, identify the risks in the industry “posed by unregulated digital lending”.
- The group will also put in place a code of best practice and recommend data security measures in the sector.
India’s central bank has set up a task force to monitor digital lending in the country. The panel consisting of four prominent members of the Reserve Bank of India and two external members of a financial technology firm and a cybersecurity firm will submit their observations on the digital lending industry within three months.
“A working group (WG) is being set up to study all aspects of
The group will study the reach of digital lending in India, identify risks in the industry “posed by unregulated digital lending” and also propose regulatory measures if necessary. In addition, the group will also put in place a code of fair practice and “recommend measures for robust data governance, data privacy and data security standards for the deployment of digital lending services”.
Earlier in December 2020, the RBI sent a warning regarding unauthorized digital lending platforms and apps, which promise quick loans.
With the coronavirus pandemic, more and more people are turning to digital apps that offer hassle-free instant loans. However, reports have surfaced of fraudulent cases resulting from such online practices. In
Telangana, 11 people have been arrested so far in connection with these dubious loan companies. the
Cyberabad Police also reportedly wrote to the Google Play Store regarding 259 of these micro-lending apps.
According to a
News minute report, at least five people have committed suicide in the state as a result of the harassment of these instant loan applications.