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 cannot allow risk to build up in the system and added that within the next few weeks, it will release the much-awaited digital lending norms. In November last year, the committee set up by the central bank suggested reining in digital loan apps through a mix of regulations, including setting up of a nodal agency to verify their credentials and legislative measures to prevent “illegal lending”.

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History of this topic

Govt proposes new legislation to curb proliferation of illegal lending apps
4 days, 17 hours ago

Govt proposes new legislation to curb proliferation of illegal lending apps

New Indian Express  

NEW DELHI: The government is planning a comprehensive legislature to curb the proliferation of illegal lending apps. The department of financial services, Ministry of Finance, has prepared a draft bill, which proposes severe punishment with jail term of up to 10 years and monetary fines of up to `1 crore for those found involved in promoting unregulated lending activities. The …

Suggestions from over 100 entities on Digital Competition Bill under consideration: FM
2 weeks, 1 day ago

Suggestions from over 100 entities on Digital Competition Bill under consideration: FM

Live Mint  

New Delhi: The government consulted over 100 entities including some of the businesses likely to be impacted by the proposed digital competition law, such as Amazon, Apple India Pvt. The minister told the House in a written reply that pre-legislative consultations on the Draft Digital Competition Bill were held as per the ministry of corporate affairs’ policy. Closed-door consultations were …

The impact of technology on finance: Enhancing experiences and safety
8 months, 2 weeks 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 …

6 key steps RBI has taken to ensure safe banking practices. Details here
9 months ago

6 key steps RBI has taken to ensure safe banking practices. Details here

Live Mint  

Digital banking has brought a paradigm shift to the way we carry out financial transactions. Digital lending guidelines: Additionally, RBI has issued guidelines on digital lending which require regulated entities to provide a key fact statement to the borrower before the execution of the contract. The banking regulator also takes appropriate supervisory actions including imposition of business restrictions. Cyber-crime reporting …

RBI Governor says no need to worry about fintech system at the moment
10 months, 2 weeks ago

RBI Governor says no need to worry about fintech system at the moment

New Indian Express  

NEW DELHI: Allaying fears over the functioning of digital payment banks amid Paytm controversy, Reserve Bank of India Governor Shaktikanta Das on Thursday said there is no need to worry about the fintech system at the moment. The apex banks’ emphasis has always been on the bilateral engagement with the regulated entities to nudge them for corrective actions and sufficient …

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 …

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. …

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 …

Cooperative banks will soon be able to do compromise settlements, write-offs on NPAs: RBI Governor
1 year, 6 months ago

Cooperative banks will soon be able to do compromise settlements, write-offs on NPAs: RBI Governor

India TV News  

Reserve Bank Governor Shaktikanta Das on Thursday said cooperative lenders will soon be able to do technical write-offs and execute compromise settlements with defaulting borrowers. RBI has decided to widen the scope of the framework for resolution of stressed assets, under which all the regulated entities including cooperative lenders will now be able to execute "compromise settlements and technical write-offs" …

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 …

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 …

Private quasi-regulatory entities offer digital strength
1 year, 11 months ago

Private quasi-regulatory entities offer digital strength

Live Mint  

While there is widespread support for India’s digital public infrastructure achievements, a small, articulate chorus of voices has begun to question certain aspects of the approach. In a recent paper, Smriti Parsheera, a well-regarded analyst of Indian tech policy, argued that these organizations have become “Alt Big Tech” and need to be regulated to ensure fairness and competition. The main …

Mint Explainer: How to prevent the birth of digital monopolies
1 year, 11 months ago

Mint Explainer: How to prevent the birth of digital monopolies

Live Mint  

A parliamentary panel has recommended ex-ante regulations for the Indian digital markets to prevent a few companies turning into large monopolies. In fact, regulations can be far broader in scope than competition laws, pushing the development of the digital ecosystem in a direction that may be seen to be socially desirable, for example, pushing companies to share data that may …

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 …

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 …

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.” …

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 …

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, …

Let reputed industrial houses run banks
2 years, 10 months ago

Let reputed industrial houses run banks

Live Mint  

The recent revised regulatory guidelines allowing 26% long-term promoter ownership in private banks, as recommended by an internal working group of the Reserve Bank of India, were along expected lines. Interestingly, RBI is still examining certain IWG recommendations, including letting corporate industrial houses with or without existing non-banking financial companies run banks. Besides, if non-industrial groups with marginal political clout—whose …

Fintech industry body seeks regulatory nod to act as SRO
2 years, 11 months ago

Fintech industry body seeks regulatory nod to act as SRO

Live Mint  

Mumbai: Fintech Association for Consumer Empowerment, a body of digital lenders on Thursday said it has applied to the Reserve Bank of India to take on the role of a self-regulatory organization in the digital lending industry. The organization said it has been working closely with regulators, official stakeholders, industry players, and other consumer groups to address the need for …

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 …

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 …

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 panel to examine digital lending risks
3 years, 11 months ago

RBI panel to examine digital lending risks

Live Mint  

The Reserve Bank of India on Wednesday said it has formed a working group to study aspects of digital lending by regulated and unregulated players, including mobile apps. “The recent spurt in the popularity of online lending platforms/mobile lending apps has raised certain serious concerns that have wider systemic implications,” RBI said, adding that the working group will examine all …

RBI forms working group on digital lending
3 years, 11 months ago

RBI forms working group on digital lending

The Hindu  

The Reserve Bank of India has constituted a working group on digital lending — including online platforms and mobile apps — to study all aspects of digital lending activities in the regulated financial sector as well as by unregulated players. “While penetration of digital methods in the financial sector is a welcome development, the benefits and certain downside risks are …

Beware of illegal digital lending apps: RBI
4 years ago

Beware of illegal digital lending apps: RBI

The Hindu  

The Reserve Bank of India has advised public to be wary of unauthorised digital lending platforms and mobile apps. Taking note of reports about individuals and small businesses falling prey to a growing number of unauthorised digital lending platforms/mobile apps, the central bank on Wednesday said “members of public are cautioned not to fall prey to such unscrupulous activities.” It …

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