RBI has issued new rules regarding digital lending. RBI has done this to curb illegal activities in the field of digital lending. Now only regulated units will be able to give loan to the customer.
The Reserve Bank of India issued new rules on 10 August 2022 to control digital lending (online loan facility). RBI has done this to check fraud and illegal activities in this sector. RBI has said that loan issuance and repayment will be only between the accounts of the borrower and the regulated entity.
No account of both the lending service provider or any third will be involved. During the process of taking the loan, the regulated entity will pay the fees or charges to the lending service provider, not the borrower.
Some rules accepted RBI has said that some rules have been accepted while the rules have been considered in principle. RBI Governor Shaktikanta Das had already said that the central bank would soon come up with new rules in this regard. According to RBI, it is necessary to bring rules for these platforms because many of them are illegal and are giving loans without any authentication.
Harassment of people increased , RBI has said that after taking loans through digital apps, harassment of people has increased more. As a result, there has been a spurt in the cases of suicide. Governor Shaktikanta Das had said about these problems that very soon a framework will be brought which will allegedly solve the challenges faced by us in relation to giving loans through digital platforms.
Working group constituted 1 year ago
RBI constituted a working group in 2021 to study the issues related to digital loans and suggest rules in relation to it. In November, the working group suggested strict rules for digital lenders. These suggestions included initiating the verification process through a nodal agency in consultation with the stakeholders. Along with this, it was also suggested to create a self-regulatory organization.
Redressal of customer complaints within 30 days
As per the existing rules of RBI, if a customer makes a complaint regarding a digital loan, it has to be resolved within a maximum of 30 days. If this is not the case, the customer can file a complaint under the Reserve Bank Integrated Ombudsman Scheme 7.
