Digital lending: Now more than ever we need fintechs to democratise credit, uplift livelihoods
The digital innovation India has made so far is here to stay. It needs adoption into commercial application to deepen the financial inclusion net
Financial inclusion can only be improved by strengthening consumer awareness and increasing product choices
The Bill & Melinda Gates Foundation s annual report 2019 titled Goalkeepers: Examining Inequality , tracked the global progress in meeting the UN s Sustainable Development Goals (SDGs) by 2030. It mentioned that geography and gender are the biggest drivers of inequality, which can be addressed with smart policies built around digital technology that improves both the quality and reach of government services .
Read more about Immobilise unregistered digital lending apps on Business Standard. Forget lack of faith, there is fear of the law enforcement machinery even among educated, sophisticated, middle-class people
Updated Jan 16, 2021 | 11:19 IST
The income and employment climate brought on by the COVID-19 pandemic has resulted in a huge spike in the number of instant loan apps, many of which do not require clients to provide their credit histories. Representational image. | Photo Credit: iStock Images
Key Highlights
The latest development comes on the heels of a warning issued by the Reserve Bank of India that malevolent lending practices across the digital space had been escalating
To make use of many of these apps, customers have to allow them access to sensitive information like their phone contact book, images stored on their mobile devices, location information and much more
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The Delhi High Court on Friday issued notices to the Reserve Bank of India (RBI) and the Central government asking for their stand on a writ petition seeking regulation and control of digital lending platforms operating through mobile apps.
A bench of chief justice DN Patel and justice Jyoti Singh sought the response to the petition by 19 February 2021. The petition refers to a circular dated 23 December 2020 issued by the RBI and highlights the charging of exorbitant interest by these lenders on loans and seeks the fixing of a maximum rate of interest chargeable by these lenders as a solution.
The petition has pointed that borrowers are being harassed and humiliated by the lenders in case of default. In addition, the petition also sought the setting up of a grievance redressal mechanism for borrowers in every state.
The Delhi High Court today issued notice in a writ petition filed seeking regulation and control of digital lending platforms. The Centre has been asked to file its reply to the petition by.