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.
Updated Jan 13, 2021 | 18:31 IST
The working group will evaluate digital lending activities and assess the penetration and standards of outsourced digital lending activities in RBI regulated entities RBI forms panel on digital lending including lending through online platforms, mobile apps
New Delhi: The Reserve Bank of India (RBI) on Wednesday (January 13) constituted a panel to study digital lending, including lending through online platforms and mobile apps.
In its statement, the RBI said: The Working Group (WG) is being set up to 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.
RBI Sets Up Working Group on Digital Lending from Online Platforms and Mobile Apps
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Taking cognizance of the spurt in digital lending by online platforms and mobile apps, the Reserve Bank of India (RBI) has set up a working group to evaluate and recommend measures on digital lending. This group will also identify risks posed by unregulated digital lending to financial stability, regulated entities, and consumers.
In a release, RBI says, 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, privacy, confidentiality and consumer protection.
Read more about RBI constitutes working group to develop and regulate digital lending on Business Standard. The six-member panel comprising four RBI internal members and two external members is expected to submit its report within three months
With frauds in digital lending space coming into sharp focus, the Reserve Bank of India has set up a working group to study digital lending activities of the regulated and unregulated players. The group will suggest steps to regulate digital lending including online lending platform and mobile lending. The recent spurt and popularity of online lending platforms/mobile lending apps have raised certain serious concerns which have wider systemic implications, RBI said in statement. The six-member panel comprised of four RBI internal and two external members is expected to submit its report within three months. Jayant Kumar Dash, Executive Director, RBI will be chairman of the group. Other three internal members are Ajay Kumar Choudhary, Chief General Manager-in-Charge, Department of Supervision, P Vasudevan, Chief General Manager, Department of Payment and Settlement Systems, RBI and Manoranjan Mishra, Chief General Manager, Department of Regulation. Mishra will be act as Member Se