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.





Posted by Jawwad Kazi on 15th Jan 2021