Payday lending may finally see some regulation as RBI sets up panel
Payday lending needed some rules, especially around terms of interest rates charged, industry insiders say. Now that the RBI has set up a committee, some action can be expected.
RBI | Representative Image.
Payday lending may soon see some regulatory action, industry insiders say, as some of these firms have been in the news for coercive collections, high-interest rates and fraudulent business practices.
“There could be some guidelines around payday lending, now that the central bank has formed a committee to look into the digital lending space,” said a founder of a fintech lending startup.
Reserve Bank of India (RBI) has set up a Working Group to study all aspects of digital lending activities in the regulated financial sector as well as by unregu
RBI sets up panel to suggest regulations on digital lending
The 6-member working group has been formed to study digital lending in regulated as well as unregulated financial sector to devise a regulatory framework for the same
BusinessToday.In | January 14, 2021 | Updated 20:08 IST
Reserve Bank of India has formed a working group to suggest ways to efficiently regulate the booming digital lending space. The 6-member working group has been formed to study digital lending in regulated as well as unregulated financial sector to devise a regulatory framework for the same. Digital lending has the potential to make access to financial products and services more fair, efficient and inclusive. While penetration of digital methods in the financial sector is a welcome development, the benefits and certain downside risks are often interwoven in such endeavours. A balanced approach needs to be followed so that the regulatory framework supports innovation while ensuring data security, priv
Google has asked the developers of the remaining identified apps to demonstrate that they comply with applicable local laws and regulations, failing which those apps will also be removed.
The working group will study all aspects of digital lending activities in the regulated financial sector as well as by unregulated players so that an appropriate regulatory approach can be put in place.