Posted: Posted Date – 3:36 PM, Thu – 9 Jun 22
Mumbai: The Reserve Bank of India will soon come up with a regulatory architecture for digital lending platforms, many of which are unlicensed and illegal, Governor Shaktikanta Das said on Thursday.
There have been increasing cases of alleged borrower suicides due to harassment by a few of the digital lending app operators.
“I think we will soon come up with a broad regulatory architecture, which should be able to address the challenges we face in lending through digital platforms, many of which are unlicensed, unregistered and, should I say, illegal,” Das said at a conference on Indian business (past, present and future).
He was speaking during the iconic week-long celebration as part of the ‘Azadi Ka Amrit Mahotsav’ to mark the 75th anniversary of independence, organized by the Central Board of Excise and Customs (CBIC).
Das suggested on Wednesday that customers borrowing from unregistered digital lending apps should contact local police if they have a problem.
Most digital lending apps are not registered with the central bank and work on their own, he told reporters after announcing the monetary policy.
Das said that whenever it receives a complaint from a customer, the central bank directs customers of these unregistered apps to contact local police, who will investigate and take action on the matter. “It is my humble request to all who are using these apps to check first whether the app is RBI registered or not. , I assure you,” he said.
The governor said on Thursday that the RBI recognizes the role of existing and emerging businesses for economic progress.
The long-term success of any business is directly linked to its quality of governance, its internal control systems and the robustness of its risk and organizational culture, he noted.
The central bank has been pushing to improve the governance and compliance culture of its regulated entities such as banks, NBFCs and other financial entities through a series of measures, Das said.