RBI Forms Digital Lending Working Group

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The RBI working group will be composed of internal and external members.

Digital lending can make access to financial products and services fairer, more efficient and more inclusive. From a tertiary support role a few years ago, FinTech-led innovation is now at the heart of the design, pricing and delivery of financial products and services.

While the penetration of digital transactions in the financial sector is a financially inclusive development, its benefits and some downside risks are often linked. This is where a balanced approach needs to be followed so that the regulatory framework supports innovation while ensuring data security, privacy, consumer protection and confidentiality.

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Digital transactions have systemic implications that prompted RBI to form a working group to study all aspects of digital lending activities in the regulated financial industry as well as by unregulated players so that a relevant regulatory approach is in place.

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The working group will be composed of internal and external members.

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