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RBI forms working group on digital lending
Why is it in news?
- The Reserve Bank of India (RBI) has constituted a working group on digital lending, including online platforms and mobile apps.
Details:
- The working group will study all aspects of digital lending activities in the regulated financial sector as well as by unregulated players.
- This is to ensure that an appropriate regulatory approach is put in place.
- The working group consists of both internal and external members.
- The group will evaluate digital lending activities and assess the penetration and standards of outsourced digital lending activities in RBI regulated entities.
- It will identify the risks posed by unregulated digital lending to financial stability, regulated entities and consumers.
- It will suggest regulatory changes to promote orderly growth of digital lending.
- It will recommend a robust fair practices code for digital lending players.