MUMBAI – The Reserve Bank of India on Wednesday formed a working group to look at digital lending in the country, including lending through online platforms and mobile applications, it said in a statement.
“Recent spurt and popularity of online lending platforms/ mobile lending apps has raised certain serious concerns which have wider systemic implications,” the RBI said in its release.
At least 10 Indian lending apps on Google’s Play Store breached Google rules on loan repayment lengths aimed at protecting vulnerable borrowers, according to a Reuters review of such services and more than a dozen users.
In December, RBI had issued a public notice about lending apps, warning some engaged in “unscrupulous activities”, such as charging excessive interest rates and fees, but no direct action has been taken so far.
January 13, 2021
Reporting by Swati Bhat and Nupur Anand; editing by Larry King
Our Standards: The Thomson Reuters Trust Principles.
Categories: India News