The Reserve Bank of India (RBI) on Wednesday formed a task force to review digital lending in the country, including lending through online platforms and mobile apps, he said in a statement.
“The recent surge and popularity of online lending platforms / mobile lending applications has raised some serious concerns which have broader systemic implications,” the RBI said in its statement.
The “task force” set up by the RBI “will study all aspects of digital lending activities” in both regulated and unregulated financial sectors, the banking regulator said. The group will include internal and external members.
At least 10 Indian loan apps on Google’s Play Store have violated Google’s loan repayment term rules designed to protect vulnerable borrowers, according to a Reuters review of these services and more than a dozen. users.
Four apps were taken from the Play Store – where the vast majority of Indians download phone apps – after Reuters reported to Google it was violating its ban on offering personal loans that require full repayment in 60 days or less. One of those apps, StuCred, was allowed to return to the Google Play Store on January 7 after removing the 30-day loan offer. He denied engaging in unscrupulous practices. The other three apps are 10MinuteLoan, Ex-Money, and Extra Mudra.
In December, the RBI issued a public notice on loan applications, warning some of them to engage in “unscrupulous activities” such as charging excessive interest rates and fees, but no direct action. has not been taken so far.
© Thomson Reuters 2020
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