RBI releases regulatory framework for digital lending

The Reserve Bank of India (RBI) on Wednesday said that based on the inputs received from the Working Group on ‘digital lending including lending through online platforms and mobile apps’ (WGDL), it has firmed up a regulatory framework to support orderly growth of credit delivery through digital lending.

The panel was set up on January 13, 2021 by RBI. The framework is based on the principle that lending business can be carried out only by entities that are either regulated by the central bank or entities permitted to do so under any other law.