RBI is exploring ways to regulate online loan apps

Mumbai: The Reserve Bank of India (RBI) has reached out to Google, the Digital Lenders Association (DLAI), fintech association FACE and several non-bank lenders for inputs on ways to regulate digital lenders, three people aware of the development said.

RBI’s working group on digital lending has sought details from Google on its criteria for onboarding fintech loan apps on its play store platform and the parameters these digital lenders follow.

The banking regulator is also seeking details on Google’s recent review exercise on online loan apps that proliferated on its platform, after which it removed in January more than 400 such apps deemed to be in violation of its policy. Many of these apps were backed by Chinese entities and flagged by regulatory authorities and state police departments for unlawful lending practices.