Under RBI’s ombudsman scheme, 7,813 complaints received against digital apps and recovery agents
2 years, 5 months ago

Under RBI’s ombudsman scheme, 7,813 complaints received against digital apps and recovery agents

The Hindu  

As many as 7,813 complaints against banks and non-banking finance companies, pertaining to digital lending applications and recovery agents, were received under the Integrated Ombudsman Scheme of the Reserve Bank of India during the last financial year, according to the Central government. In a written reply to a question from Lok Sabha member Aparajita Sarangi, the Minister of State for Finance said the RBI had introduced the “The Reserve Bank - Integrated Ombudsman Scheme, 2021” wherein complaints against banks and NBFCs regarding digital lending could be lodged. Through a statement in December 2020, the RBI had cautioned the general public against falling prey to unscrupulous activities of unauthorised digital lending platforms/mobile apps and verify the antecedents of the entities offering such loans. It has also issued advisories to the State governments to keep a check on unauthorised digital lending platforms/mobile apps through their respective law enforcement agencies.

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History of this topic

ED Files Complaint Against NBFCs and Fintech Firms in Loan Scam
4 months ago

ED Files Complaint Against NBFCs and Fintech Firms in Loan Scam

Deccan Chronicle  

Hyderabad: The Directorate of Enforcement, Hyderabad Zonal Officials, have filed Prosecution Complaint against several NBFCs, Fintech companies and individuals involved in instant loan lending business through various mobile applications before the Special MSJ Court, Nampally, Hyderabad under the provisions of Prevention of Money Laundering Act, 2002 and the Court has taken cognizance of the complaint. ED initiated investigation on the …

Indian consumers still falling prey to unlawful loan applications: Report
8 months, 1 week ago

Indian consumers still falling prey to unlawful loan applications: Report

India TV News  

One-third of the high-confidence customers have limited knowledge about their digital loans in India. A recent report from the Fintech Association for Consumer Empowerment shared the insights from a customer survey which was conducted between December 2023 and January 2024 to systematically understand the gaps in users' approaches and knowledge about Digital Lending Applications in India and it further drives …

RBI ban on Bank of Baroda World app: Finance ministry's likely plan on frauds
8 months, 1 week ago

RBI ban on Bank of Baroda World app: Finance ministry's likely plan on frauds

Hindustan Times  

Union finance ministry may propose stricter measures to protect citizens from cyber fraud, it was reported. This comes after an increase in incidents of frauds, including the Bank of Baroda World app scam, the Times of India reported citing sources who “mentioned a recent inter-ministerial meeting focused on bolstering cybersecurity and tackling financial fraud”, it noted. In October 2023, the …

The impact of technology on finance: Enhancing experiences and safety
8 months, 1 week ago

The impact of technology on finance: Enhancing experiences and safety

Hindustan Times  

The proliferation of financial technology and digital banking services has revolutionised the financial landscape, making access to finance more convenient and inclusive. The prominence of fintech platforms and the increasing digitalisation of banks have democratised financial services, expanding access beyond metropolitan cities. There is a significant increase in instances of fraudsters posing as employees of fintech platforms, attempting to obtain …

In Chandigarh, RBI ombudsman bats for consumer empowerment
9 months, 2 weeks ago

In Chandigarh, RBI ombudsman bats for consumer empowerment

Hindustan Times  

Rajeev Dwivedi, chief general manager and ombudsman, Reserve Bank of India, who was in the city on Thursday, highlighted the pivotal role of Reserve Bank’s Integrated Ombudsman Scheme in swiftly addressing customer grievances. Our aim is to elevate consumer awareness surrounding the transformative RB-IOS.” He said the scheme, introduced on November 12, 2021, represented a significant milestone in RBI’s commitment …

Google removed over 2200 fraudulent loan apps from Play Store
10 months, 2 weeks ago

Google removed over 2200 fraudulent loan apps from Play Store

Deccan Chronicle  

New Delhi: The government on Tuesday informed Parliament that Google has suspended or removed more than 2,200 fraudulent loan apps from its Play Store between September 2022 and August 2023. “The government is constantly engaged with the Reserve Bank of India and other regulators and stakeholders concerned to control fraudulent loan apps,” minister of state for finance Bhagwat K Karad …

Harmonizing Horizons: Unravelling Digital Lending Regulations in a Global Context
11 months ago

Harmonizing Horizons: Unravelling Digital Lending Regulations in a Global Context

Live Law  

Driven by technical improvements and improved internet access, digital lending is on the rise in India with the goal of improving financial inclusion. The Consumer Financial Protection Bureau plays a pivotal role in enforcing federal consumer protection laws, recently issuing guidelines tailored for digital lending platforms. United Kingdom Within the United Kingdom, oversight of digital lending platforms falls under the …

Fraudulent loan apps proliferate in India. But how big of a problem are they?
11 months, 3 weeks ago

Fraudulent loan apps proliferate in India. But how big of a problem are they?

Firstpost  

The Centre has ordered popular social media platforms and other websites not to host The Centre is cracking down on fraudulent loan apps. The government on Wednesday ordered social media platforms and other websites not to host Union minister Rajeev Chandrasekhar said, “One of the areas we are now cracking down on is advertising of fraudulent loan apps that many …

RBI enhances UPI payment limits for healthcare and education
1 year ago

RBI enhances UPI payment limits for healthcare and education

The Hindu  

Along with steps to protect borrowers availing loans online, the Reserve Bank of India on Friday enhanced the UPI payment limits for healthcare and education from ₹1 lakh to ₹5 lakh, and the limit on recurring e-payment mandates for credit card and insurance premia payments as well as mutual fund investments to ₹1 lakh from the current limit of ₹15,000. …

India ranks first in digital payments made globally: Report
1 year, 4 months ago

India ranks first in digital payments made globally: Report

Deccan Chronicle  

Hyderabad: Online banking and the shift to a cashless society started approximately three decades ago in India. This year, 91 billion digital payment transactions have been recorded and today India ranks first in the number of digital payments made globally. Backbase on Wednesday released the IDC Infobrief titled ‘Accelerating customer-centric transformation by balancing build and buy - A collaborative approach …

Explained | What is RBI’s pilot programme for facilitating ‘frictionless’ and ‘timely’ credit?
1 year, 4 months ago

Explained | What is RBI’s pilot programme for facilitating ‘frictionless’ and ‘timely’ credit?

The Hindu  

The story so far: On August 17, the Reserve Bank of India commenced a pilot programme endeavouring to evaluate the feasibility of the ‘Public Tech Platform for Frictionless Credit’. The suggested platform would strive to “enable delivery of frictionless credit by facilitating seamless flow of required digital information to lenders.” What is the platform for? The central banking regulator has …

RBI to start pilot on Public Tech Platform for frictionless credit
1 year, 4 months ago

RBI to start pilot on Public Tech Platform for frictionless credit

The Hindu  

The Reserve Bank of India has announced the development of a Public Tech Platform for Frictionless Credit by Reserve Bank Innovation Hub, a wholly-owned subsidiary of RBI. Currently, data needed for credit appraisal are available with different entities like Central and State governments, account aggregators, banks, credit information companies, and digital identity authorities. In this context, the Public Tech Platform …

Home loan, other borrowers can switch to fixed-rate regime: RBI
1 year, 4 months ago

Home loan, other borrowers can switch to fixed-rate regime: RBI

Hindustan Times  

The Reserve Bank on Thursday said it will come out with a framework allowing borrowers to switch to fixed interest rate from floating interest rate, a move that would provide relief to borrowers of home, auto and other loans reeling under the impact of high interest rate. Unveiling the bi-monthly monetary policy, Reserve Bank Governor Shaktikanta Das said under the …

7 reasons why it is essential to stay cautious of digital lending apps
1 year, 4 months ago

7 reasons why it is essential to stay cautious of digital lending apps

Live Mint  

With the rapid advancement of technology and the proliferation of smartphones, the fintech industry in India has witnessed significant growth in recent years. Predatory lending practices Digital lending apps often target vulnerable individuals who may have limited access to formal banking services or who urgently require funds. Data privacy and security concerns Digital lending apps typically require borrowers to share …

10 things to know about Reserve Bank of India's Integrated Ombudsman Scheme
1 year, 5 months ago

10 things to know about Reserve Bank of India's Integrated Ombudsman Scheme

Firstpost  

The Reserve Bank of India launched a scheme to provide a simple and effective way for customers of various financial services to resolve their complaints. The Scheme integrates the existing three Ombudsman schemes of RBI namely, the Banking Ombudsman Scheme, 2006; the Ombudsman Scheme for Non-Banking Financial Companies, 2018; and the Ombudsman Scheme for Digital Transactions, 2019. The Scheme adopts …

Digital Loan Apps in India denied access to user location and call logs: Know Google’s latest guidelines
1 year, 6 months ago

Digital Loan Apps in India denied access to user location and call logs: Know Google’s latest guidelines

India TV News  

Digital loan apps have emerged as a troublesome issue in recent years, exploiting individuals looking for quick and easy money. The companies responsible for these apps no longer have access to sensitive data, including contacts, photos, videos, location information, and call logs from users' devices. Moreover, Google is now demanding that all legitimate app companies provide supporting documentation to verify …

RBI asks banks, NBFCs to promote digital payments
1 year, 9 months ago

RBI asks banks, NBFCs to promote digital payments

The Hindu  

The Reserve Bank of India has unveiled “Har Payment Digital” as part of Digital Payments Awareness Week 2023 to make every person in India a user of digital payments. Stating that payment systems in India have witnessed over 1000 crore transactions every month since December 2022, he said “This speaks volumes of the robustness of our payments ecosystem and acceptance …

Har Payment Digital: RBI launches mission to make every citizen a user of digital payment
1 year, 9 months ago

Har Payment Digital: RBI launches mission to make every citizen a user of digital payment

India TV News  

Reserve Bank of India governor Shaktikanta Das launched the "Har Payment Digital" mission on Monday, as part of the Digital Payments Awareness Week 2023. Image Source : PIB TWITTERHar Payment Digital: RBI launches mission to make every citizen a user of digital payment The HPD mission will run until the period of Vision 2025, to convert non-users into users of …

Fintech-Driven Digital Lending To Bridge Credit Gap In India, Says Report
1 year, 10 months ago

Fintech-Driven Digital Lending To Bridge Credit Gap In India, Says Report

News 18  

The fintech revolution is likely to spur digital lending in India, which is expected to surpass traditional avenues of lending by 2030. This will be driven by deeper inroads being made in the unsecured small-ticket size segment and the secured collateral-based high-ticket size market, according to the latest white paper Fintech-led Digital Lending: Coming of Age by Experian India in …

Are You A Digital Lending App User? Know Your Rights, Complaint Process
1 year, 11 months ago

Are You A Digital Lending App User? Know Your Rights, Complaint Process

News 18  

Last year the Reserve Bank of India issued guidelines on digital lending to protect customers from a range of issues including exorbitant interest rates by certain entities, data protection and grievance redressal. – REs shall ensure that they and the LSPs engaged by them shall have a suitable nodal grievance redressal officer to deal with Fintech/digital lending related complaints. – …

RazorpayX launches its own digital lending platform for NBFCs ahead of RBI's 30 Nov deadline
2 years, 1 month ago

RazorpayX launches its own digital lending platform for NBFCs ahead of RBI's 30 Nov deadline

Firstpost  

As the Reserve Bank of India’s deadline for adoption of digital lending guidelines is coming closer, it has made lending merchants rethink their payment infrastructure and the ways that they used to transfer their money. Business banking platform Razorpay has come up with its own digital lending solution titled ‘RazorpayX Digital Lending 2.0’. According to Razorpay, the platform will “automate …

Andhra Pradesh: Probe into loan app cases finds links with servers operating from Pakistan, China
2 years, 2 months ago

Andhra Pradesh: Probe into loan app cases finds links with servers operating from Pakistan, China

The Hindu  

The police have sounded alert as the investigation into the loan app fraud and harassment cases have found links with servers operating from Pakistan, China, Bangladesh, Nepal and other countries. “The investigating officers have found that the addresses of these loan app operators and the WhatsApp numbers used in the transactions have links with Pakistan, Bangladesh, China and Nepal. The …

Why CCI matters for protecting customers from digital players
2 years, 3 months ago

Why CCI matters for protecting customers from digital players

Live Mint  

The Parliamentary Standing Committee on Finance, headed by Jayant Sinha, is only the latest to voice its concerns about potential risks from the rapid growth of the digital economy. In particular, the risks arising from the inherently anti-competitive nature of players in the digital world due to what are known as network effects, the peculiar feature that makes the value …

RBI to Prepare Whitelist of Legal Loan Apps as Nirmala Sitharaman Cracks Down on Illegal Apps
2 years, 3 months ago

RBI to Prepare Whitelist of Legal Loan Apps as Nirmala Sitharaman Cracks Down on Illegal Apps

News 18  

The Reserve Bank of India is set to prepare a “Whitelist” of all the legal lending apps, the government said on Friday, following a meeting chaired by finance minister Nirmala Sitharaman a day before. The minister, along with top officials, chaired the meeting to discuss various issued related to illegal loan apps outside the regular banking channels, the finance ministry …

India preparing whitelist of legal loan and finance apps, will ban others soon
2 years, 3 months ago

India preparing whitelist of legal loan and finance apps, will ban others soon

India Today  

Illegal loan apps are flooding the Google Play store and Apple App store. On Friday, the Finance ministry expressed concerns over the increasing number of illegal loan apps on the Google Play store and Apple app store. The decision comes after the union Minister for Finance & Corporate Affairs Nirmala Sitharaman chaired a meeting to discuss the various issues related …

The fatal lure of instant loan apps
2 years, 3 months ago

The fatal lure of instant loan apps

The Hindu  

“Mummy, I am leaving.” This is how Amit Yadav, 35, a mechanic from Madhya Pradesh’s Indore, concluded his note on August 23 before adding the words “ek fakir insaan ” below his name and signature. In response, Union Finance Minister Nirmala Sitharaman said the Central government had taken cognisance of such cases where digital loan apps “originating from one particular …

Entities in Other States Behind Online Loan Frauds, Police Taking Strict Action, Says Kerala Govt
2 years, 3 months ago

Entities in Other States Behind Online Loan Frauds, Police Taking Strict Action, Says Kerala Govt

News 18  

The Kerala government on Monday said that incidents of people being cheated after availing loans through online apps are being reported in the state and the police was taking strict action against the entities involved in such activities even though they are operating from other states. Chief Minister Pinarayi Vijayan said in the assembly that according to information received by …

ED raid on loan apps reveals strong Chinese presence in crypto crimes
2 years, 3 months ago

ED raid on loan apps reveals strong Chinese presence in crypto crimes

The Hindu  

Published : Aug 26, 2022 16:45 IST The Enforcement Directorate, still preoccupied with unearthing corruption and money laundering among opposition politicians, has decided to turn its attention to those involved in the crypto business in the country as well. Entities engaged in predatory lending deposited funds in the rupee wallets of Yellow Tune, which were then converted into cryptocurrency tokens …

Google Play got rid of 2K controversial personal loan apps- Know more
2 years, 3 months ago

Google Play got rid of 2K controversial personal loan apps- Know more

India TV News  

Google has stated that it has started taking off 2,000 controversial personal loan apps from its Play Store in India in the January-June period after consulting with law enforcement agencies. The eligibility includes a copy of their license by the Reserve Bank of India, and a declaration that they are not directly engaged in money lending activities and are only …

India May Ban 300 Apps to Plug the 'Sleaze Route' of Predatory Lending - News18
2 years, 4 months ago

India May Ban 300 Apps to Plug the 'Sleaze Route' of Predatory Lending - News18

News 18  

Predatory lending by instant loan apps have led to a spate of suicides in several states. PART 3 | When Lending Apps Bully Victims, Debt Trap Sometimes Becomes Deathtrap Traced to China and suspected to be one of the biggest money laundering scams, the apps are also being watched closely by the Enforcement Directorate, Serious Fraud Investigation Office, Intelligence Bureau, …

Explained | Why has the RBI come out with a framework to regulate digital lending?
2 years, 4 months ago

Explained | Why has the RBI come out with a framework to regulate digital lending?

The Hindu  

The story so far: On August 10, the Reserve Bank of India instituted a framework for regulating the digital lending landscape in the country. The latest set of regulations are based on recommendations received from its Working Group on ‘Digital Lending including lending through online platforms and mobile apps’ which was constituted last January. Lending Service Providers act in partnership …

RBI issues guidelines to regulate digital lending
2 years, 4 months ago

RBI issues guidelines to regulate digital lending

The Hindu  

The Reserve Bank of India on Wednesday issued the first set of guidelines for digital lending, to crack down on illegal activities by certain players. Stating that digital lending channels had become prominent recently, the RBI said certain concerns had also emerged which, “if not mitigated, may erode the confidence of members of the public in the digital lending ecosystem.” …

Digital lenders should stick to businesses they are licensed to do: RBI governor
2 years, 5 months ago

Digital lenders should stick to businesses they are licensed to do: RBI governor

Live Mint  

MUMBAI: Digital lenders should operate within the guardrails of regulatory guidelines and adhere to the specific licences granted to them, Reserve Bank of India governor Shaktikanta Das said on Friday. Without permission if they are engaging in activities for which they have no license then it is not acceptable,” Das said at Bank of Baroda’s annual banking conference. Das said …

RBI To Soon Come Out With Guidelines On Digital Lending, Says Shaktikanta Das
2 years, 6 months ago

RBI To Soon Come Out With Guidelines On Digital Lending, Says Shaktikanta Das

News 18  

Reserve Bank of India Governor Shaktikanta Das on Friday said the central bank will soon issue guidelines and measures to make the digital lending ecosystem safe while enhancing customer protection and encouraging innovation. He also said the recommendations of the RBI Working Group on digital lending are under examination for the issuance of the guidelines. “We have recently set up …

RBI unveils guidelines for digital banking units. Here’s 10 key points
2 years, 8 months ago

RBI unveils guidelines for digital banking units. Here’s 10 key points

Live Mint  

The Reserve Bank of India on Thursday released the guidelines on the “Establishment of Digital Banking Units ”. DBUs are specialised fixed point business unit / hub housing certain minimum digital infrastructure for delivering digital banking products & services as well as servicing existing financial products & services digitally, in both self-service and assisted mode, to enable customers to have …

RBI finds 600 illegal lending apps operating in India
2 years, 8 months ago

RBI finds 600 illegal lending apps operating in India

India Today  

A Reserve Bank of India Working Group on digital lending has identified a whopping 600 illegal lending apps operating in India in the last year. As per RBI, “Sachet”, a portal established by RBI against unregistered entities, has received approximately 2,562 complaints against digital lending apps between the start of January 2020 to end of March 2021. In December 2020, …

Govt issues warning, says installing unknown lending apps may compromise data
3 years ago

Govt issues warning, says installing unknown lending apps may compromise data

Hindustan Times  

The central government has advised people to stay away from instant mobile application-based lenders, which could land them in trouble. Further, the Cyber Dost Twitter handle has asked people to be vigilant before installing unknown applications on their mobile phone that provide loan. These RBI too has been cautioning people against loans being offered by unauthorised digital platforms, mobile applications …

Credit-starved India Cannot Achieve Double-digit Growth. It Needs Digital Banks for Lending
3 years ago

Credit-starved India Cannot Achieve Double-digit Growth. It Needs Digital Banks for Lending

News 18  

The Indian economy might have been “liberalized” since the early 1990s, yet a sector–banking–still exists where a license is given and the business model defined by the regulator. The need for regulation for digital banks arises as traditional universal banks like Kotak are already offering digital banking through their 811 service. These banks can leverage a new deposit base like …

Beware! 600 fake money lending apps operating in India, says RBI report
3 years ago

Beware! 600 fake money lending apps operating in India, says RBI report

India TV News  

Highlights As many as 600 illegal money lending apps are operating in India, says RBI These apps are available on multiple app stores for Android users These apps can search through key words like loan, instant loan, quick loan, etc Fake Money Lending Apps in India: As many as 600 illegal money lending apps are operating in India, a report …

RBI report finds 600 illegal loan apps operating in India
3 years, 1 month ago

RBI report finds 600 illegal loan apps operating in India

The Hindu  

A Reserve Bank of India Working Group on digital lending, including lending through online platforms and mobile apps, has stumbled upon more than 600 illegal loan apps operating in India. In course of its filed work to prepare a detailed report on digital lending and to suggest recommendations, the WG found out the existence of over 1,100 unique loan apps …

Experience Bank of Maharashtra’s hassle free Digital Lending platform
3 years, 1 month ago

Experience Bank of Maharashtra’s hassle free Digital Lending platform

Hindustan Times  

- Zero processing charges on Housing Loan and Car Loan during ongoing festive season - Lucrative Rate of Interest With changing lifestyles and increased demand for luxury, the surge in auto and home loan is visible in every nook and corner of the country. Considering the consumer demand, Bank of Maharashtra, a premier public sector bank in the country, has …

Digital lenders must help the vulnerable access productive credit
3 years, 6 months ago

Digital lenders must help the vulnerable access productive credit

Live Mint  

The effects of the second wave of covid on micro, small and medium enterprises are widely anticipated to be more harmful than those of the first wave. A recent article published in Mint on 6 May 2021, ‘We must study the MSME credit gap before we can fix it’ by Deep Mukherjee, emphasises the scope of digital lending based on …

ED attaches assets worth Rs 76 Crore in Chinese loan app scam
3 years, 7 months ago

ED attaches assets worth Rs 76 Crore in Chinese loan app scam

India Today  

The Enforcement Directorate has attached money to the tune of Rs 76.67 crore, lying in various bank accounts and payment gateways, in connection with Chinese loan application companies and their Indian associates, officials said. The amount attached by ED pertains to seven companies, out of which three are fintech companies -- Mad Elephant Network Technology Private Limited, Baryonyx Technology Private …

Desist from sharing sensitive info online: SBI tells customers
3 years, 7 months ago

Desist from sharing sensitive info online: SBI tells customers

India TV News  

With digital transactions gaining traction amidst rising COVID cases, the country's biggest lender SBI has cautioned its customers to be alert against fraudsters and not to download any app from an unknown source. "We advise our customers to be alert of fraudsters and not to share any sensitive details online or download any app from an unknown source," State Bank …

Government planning crackdown on apps offering cash loans online
3 years, 9 months ago

Government planning crackdown on apps offering cash loans online

Hindustan Times  

The government is planning a crackdown on apps offering cash loans, exploring new regulatory options that could ban coercive recovery procedures, cap the rate of interest and require mandatory registrations after increasing reports from around the country of people falling into debt traps, with at least 12 cases leading to suicide since late last year. According to a 2007 report …

RBI receives complaints against 1,509 digital lending apps
3 years, 10 months ago

RBI receives complaints against 1,509 digital lending apps

India TV News  

The Reserve Bank of India intimated that it has received complaints against 1,509 digital lending applications, Minister of State for Finance Anurag Singh Thakur said in a written reply to the Lok Sabha on Monday. The RBI has received complaints against 1,019 unregistered or unregulated digital loan applications and 490 registered NBFCs that are engaged in digital lending, he said. …

RBI received complaints against 1,509 digital lending apps
3 years, 10 months ago

RBI received complaints against 1,509 digital lending apps

Hindustan Times  

The Reserve Bank of India intimated that it has received complaints against 1,509 digital lending applications, minister of state for finance Anurag Singh Thakur said in a written reply to the Lok Sabha on Monday. The central bank in December cautioned the general public against unauthorised digital lending platforms/apps with an appeal to verify the antecedents of the service provider. …

RBI sees 387% rise in complaints against NBFCs, 58% rise against banks
3 years, 10 months ago

RBI sees 387% rise in complaints against NBFCs, 58% rise against banks

Live Mint  

The number of complaints against banks and non-banking financial institutions with Reserve Bank of India is on the rise. According to RBI’s annual report on Banking Ombudsman Scheme, the number of complaints against banks rose by 58% in the financial year 2019-20. The ombudsman for NBFCs received a total of 19,432 complaints in the same FY as against 3,991 a …

NBFCs, fintech companies urge FM Nirmala Sitharaman to enhance lending facilities
3 years, 11 months ago

NBFCs, fintech companies urge FM Nirmala Sitharaman to enhance lending facilities

Live Mint  

Non-banking finance companies and fintech players have urged Finance Minister Nirmala Sitharaman to enhance the lending facilities by three to four years which were announced and extended by the Reserve Bank of India during Covid-19 lockdown. This requires great effort for financial inclusion, including increased lending," said Harsh Kumar Bhanwala, Executive Chairman of Capital India. Banks and capital markets play …

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