RBI Announces First Set Of Rules For Digital Lending
NDTV
The Reserve Bank is statutorily mandated to operate the credit system of the country to its advantage.
The Reserve Bank of India (RBI) on Wednesday released the first set of norms to regulate digital lending to crack down on the growing number of online frauds and unlawful activities.
As per the new norms, all loan disbursals and repayments have to be executed only between the bank accounts of the borrower and the regulated entity without any pass-through or pool account of the lending service provider (LSP) or any third party.
The Reserve Bank's regulatory framework is focused on the digital lending ecosystem of RBI's Regulated Entities (REs) and the Lending Service Providers (LSPs) engaged by them to extend various permissible credit facilitation services.
As regards entities authorised to carry out lending as per other statutory/regulatory provisions but not regulated by RBI the respective regulator/ controlling authority may consider formulating or enacting appropriate rules/regulations on digital lending based on the recommendations of WGDL.
