According to the RBI, separate laws need to be passed to prevent illegal digital lending
The Reserve Bank of India (RBI) working group recommended the establishment of a self-regulatory organization for participants in the digital lending business.
These recommendations are provided as part of the digital loan report via online platforms and mobile applications.
The RBI report states that separate laws should be enacted to prevent illegal digital lending activity and that all data should be stored on Indian servers.
The Committee recommends that data collection be carried out only with the prior written consent of the borrower.
“The purpose of this report is to strengthen customer protection, make the digital lending ecosystem safe and sound, while encouraging innovation,” he said.
The digital loan application industry has tightened scrutiny by the RBI and the police after numerous complaints about data breaches and harassment from recovery officials.
To address this issue, the RBI set up a six-member working group in January to assess digital lending and make unregulated digital loans financially sound and regulated. , Identify the risks it poses to consumers.