India’s central bank RBI to monitor digital lending, of money apps

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RBI Digital Lending Apps: In a recent set of events, where multiple small personal Loan apps have been busted in order under the charge of illicit use of these apps to collect the loan money.

Not only the guy taking the loan was illegally made to pay the loan but the interest on these loans was very high.

India’s central bank, RBI, has set up a committee to monitor these money lending apps. This committee consists of four high officials of RBI and two members from fintech firm and cybersecurity firm. 

The RBI said that this recent spike in online apps providing personal loans poses serious concerns to the individuals using it.

RBI Digital Lending Apps, When asked about the specifics of the committee set up by the RBI about their set concerns and goals, the official replied, “The group will study the scope of digital lending in India, look for the risks in the sector “posed by these unregulated digital money lending apps” and also suggest measures to regulate these apps if needed.

Moreover, the group lists out a set of Fair Practices Code and “recommend a set of measures for robust data governance, data privacy and data security standards for deployment of such digital loan lending services.”

Earlier in the December of 2020, after taking the notice of the situation about fraud money lending apps, RBI has sent out a notice, adding attention towards these apps, that such apps should not be used and if a person is engaged with any such app should report it to the officials

With the Covid pandemic, individuals have been turning increasingly more to online applications that offer instant personal loans aga.

Be that as it may, reports have surfaced about cases arising out of such online practices.

In Telangana, 11 individuals have been taken into custody so far in association with such questionable credit companies.

The Cyberabad police have likewise purportedly written to Google Play Store with respect to 259 such personal Loan applications.

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