‘Digital payments creating new risks’

Mumbai: The success of Unified Payments Interface (UPI) and mass adoption of digital banking and e-payment services has given rise to new concerns for the RBI. The central bank is seeing unbridled engagement of third-parties, mis-selling, breach of data privacy, exorbitant interest rates and unethical recovery practices emerge. “The fast-growing digital lending ecosystem poses novel challenges, and regulated entities need to be cautious about unethical recovery practices and data privacy,” the RBI said in its report on ‘Trend and Progress of Banking’.