Highlights
Adoption of unacceptable and high-handed recovery methods.
Misuse of agreements to access data.
New Delhi: The Reserve Bank of India (RBI) has issued cautions against unauthorised Digital Lending Platforms and Mobile Apps, asking individuals and small businesses to be careful while going for loans.
RBI said that there have been reports about individuals/small businesses falling prey to growing number of unauthorised digital lending platforms/Mobile Apps on promises of getting loans in quick and hassle-free manner. These reports also refer to excessive rates of interest and additional hidden charges being demanded from borrowers; adoption of unacceptable and high-handed recovery methods; and misuse of agreements to access data on the mobile phones of the borrowers.