The Reserve Bank of India (RBI) on Thursday warn the general public to shorn involving in digital lending apps deployed by regulated entities.
This move aims to check the problems arising from mushrooming unauthorized players in the segment.
Announcing the third bi-monthly monetary policy for the current financial year, RBI Governor Shaktikanta Das said the RBI has taken several measures for the orderly development of the digital lending ecosystem in India.
Why Public Repository of Digital Lending Apps?
- Public Repository: The RBI aims to create a centralized database of approved lending platforms.
- Regulatory Oversight: This repository will require RBI-regulated financial institutions to provide and maintain details of their digital lending applications.
- Consumer Protection: The initiative is designed to help consumers differentiate between legitimate and potentially harmful lending apps.