RBI will soon regulate digital lending platforms, to clamp down on many ‘unauthorised and illegal’ apps: RBI Governor

RBI Governor suggests that customers borrowing from unregistered digital lending apps should approach the local police in case of any issue

The Reserve Bank of India (RBI) will soon come out with regulatory architecture for digital lending platforms, many of which are unauthorised and illegal, Governor Shaktikanta Das said on June 9.

There are rising cases of borrowers allegedly dying by suicide due to facing harassment at the hands of a few platform operators.

“I think very soon we will be coming out with a broad regulatory architecture, which should be able to address the challenges that we are confronted...with regard to lending through digital platforms, many of which are unauthorised, unregistered and, should I say, illegal,” Mr. Das said while delivering a lecture on ‘Indian Businesses (Past, Present and Future).’

He was speaking at the Iconic Week celebration as part of the ‘Azadi Ka Amrit Mahotsav’ to mark the 75th anniversary of India’s Independence, organised by the Central Board of Indirect Taxes and Customs (CBIC).

Mr. Das on June 8 suggested that customers borrowing from unregistered digital lending apps should approach the local police in case of any issue.

Most of the digital lending apps are not registered with the central bank and operate by themselves, he told reporters after announcing the monetary policy.

The RBI Governor noted that whenever it gets a complaint from any customer, the central bank directs customers of such unregistered apps to approach the local police, which will conduct an investigation and take necessary action.