M Rajeshwar Rao, Deputy Governor of the Reserve Bank of India (RBI), stated on Thursday that the recently issued digital lending guidelines are intended to close loopholes that corporations use to abuse clients.
Rao stated at an Assocham event that the RBI has taken steps to combat activities such as unauthorized third-party affiliation, misselling, data privacy violations, unethical loan recovery, and excessive interest rates. We have decided to regulate digital lending.
After several months of research and engagement with experts, the RBI published digital loan regulations on August 10. In addition, it was announced last week that these guidelines will be applied by all digital lending organizations by November of this year. Following the publication of the guidelines, numerous fintech businesses expressed worry that this may jeopardize our company.
Rao went on to say that the new guidelines were created to find a balance between innovation and systems. Its other goal is to safeguard customers from corporate exploitation.
According to the Deputy Governor, digital loans are critical to the country's growth. This assists small dealers in maintaining cash flow. While issuing the rules, the authorities took great care to foster industry innovation. However, there should be no danger to the consumers' interests. The government is also working to ensure that financial services reach every citizen in the country. Currently, 78 percent of adult people in the nation have bank accounts, up from 53 percent in 2014.
