Digital Lending RBI: The central bank has now issued new rules regarding the facility of taking loans online. Under the new rules, payment aggregators can be used to repay the loan. On February 14, RBI issued new rules regarding online loan or digital lending.
Under these rules, RBI said that payment aggregators who also work as Lending Service Providers (LSP) can be used to repay the loan. Not only this, payment aggregators will have to follow the Digital Lending Guidelines. Let us tell you that in August 2022, the Reserve Bank of India had issued some rules to control digital lending. These rules were issued to prevent fraud and illegal activities.
Said this in the new guidelines
Under the new rule, all loan disbursals and repayments must take place between the borrower’s bank account and regulated entities such as banks or NBFCs only and this transaction will not involve any other or pool account of the lending service provider or any third party.
Apart from this, RBI also said that during the process, any fees or charges to be paid to LSPs will be done directly by the regulated entity and not by the borrower. On Tuesday, the Reserve Bank of India also issued FAQs regarding Digital Lending Guidelines.
Said this about recovery agents
Regarding recovery agents in the FAQs, it has been said that at the time of loan section, the borrower may be informed of the names of empaneled agents authorized to contact the borrower in case of loan default. Apart from this, RBI also said that in case of default, regulated entities such as banks and NBFCs can do physical interface to cover loans in cash. However, when it is necessary, then only this work has to be done.
