A working group of the Reserve Bank of India (RBI) has suggested that a separate law be enacted by the government to end illegal digital lending, while proposing stringent norms for digital lenders.
The working group was set up in the backdrop of business conduct and customer protection concerns arising out of the spurt in digital lending activities. There have been complaints of harassment by unauthorised digital lending apps. Media have reported cases of suicides by borrowers following unrelenting harassment by digital lending apps.
The working group, headed by RBI executive director Jayant Kumar Dash, proposed subjecting the digital lending apps to a verification process by a nodal agency, which should be set up in consultation with stakeholders. It also recommended setting up of a self-regulatory organisation (SRO), covering the participants in the digital lending ecosystem.
“The report’s main focus is on improving client protection and ensuring the safety and soundness of the digital lending ecosystem while fostering innovation,” the RBI said in a statement.
According to a report in the Times of India, the working group has also suggested tighter norms for “buy now pay later” loans. “Since these products do not meet the requirements of traditional credit facilities, a suitable notification may be issued by the government of India in this regard,” the group said.
(Follow Money9 for latest Personal finance stories and Market Updates)
One of the trends that got accentuated during the pandemic was stays at small properties of five to 10 rooms in picturesque locations
In India, the segment of ETFs is slowly taking off and several mutual fund houses are offering ETFs to investors.
The NIP will help augment India’s productive capacity, contribute to our overall growth and bring down the logistics costs, improving competitiveness
Diversification is key and should be followed for stable and steady returns in the long run.