Mumbai: The Reserve Bank of India (RBI) is set to launch a public repository of digital lending apps to combat the growing menace of unauthorized lending platforms. The central bank announced this crucial step during its bimonthly monetary policy committee meeting.
The repository will serve as a comprehensive list of digital lending apps operated by RBI-regulated entities. This initiative aims to empower borrowers with the necessary information to distinguish between legitimate and fraudulent lending platforms. By making this data publicly accessible, the RBI hopes to curtail the surge in illegal lending activities that have plagued the financial sector.
The decision comes in response to the increasing number of complaints related to unauthorized digital lending apps, which often employ aggressive tactics and exorbitant interest rates. These platforms have caused significant financial distress to borrowers and have tarnished the reputation of the legitimate digital lending industry.
By creating a public repository, the RBI aims to enhance transparency and accountability in the digital lending space. The central bank will require regulated entities to regularly update information about their digital lending apps on the repository. This will enable borrowers to verify the authenticity of a lending platform before engaging in any financial transactions.
The RBI’s move is expected to strengthen consumer protection and foster a more secure digital lending ecosystem in India.
