RBI cautions against unbridled mushrooming of digital lending platforms

Reserve Bank of India Governor Shaktikanta Das on Tuesday cautioned against the unbridled mushrooming of digital lending platforms which have been charging excessive interest rates and indulging in unethical recovery and breaching data privacy.

This comes at a time when the RBI is engaged in preparing a list of legal digital loan apps which alone would be allowed to lend in the future.

“The need of the hour is to ensure assurance of safety after following a process of green-lighting (whitelisting) and due diligence by the regulated entities. The RBI, in association with other relevant agencies, is taking steps to address this issue and take further steps as may be necessary.