Reserve bank forms working group to regulate digital via loan apps

Jan 14 2021 07:30 AM
Reserve bank forms working group to regulate digital via loan apps

The Reserve Bank of India (RBI) on Wednesday said that has set up a six-member working group on digital lending including lending through online platforms and mobile applications, the central bank said in a release today.

The working group will study all aspects of digital lending activities in the regulated financial sector, as well as by unregulated players, so that an appropriate regulatory approach can be put in place. The panel will constitute both external and internal members and will be chaired by RBI Executive Director Jayant Kumar Dash.

The Reserve Bank of India has advised the working group to submit its report within three months, the release said. The setting up of the committee comes after the rising cases of harassment by such entities. Further, as in the case of crypto-currency, the Reserve Bank of India may also look to caution banks against providing banking services and accounts to those who are unregistered entities providing loan services.

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