On Wednesday, December 23, the Reserve Bank of India (RBI) warned borrowers or users, including individuals and small businesses, of the growing number of unauthorized digital lending platforms and mobile apps in promising to get quick and hassle free loans. . Platforms charge excessive interest rates and additional hidden fees, adopt unacceptable and overbearing collection methods, and abuse agreements to access data on borrowers’ cell phones. The central bank said members of the public are warned not to fall prey to such unscrupulous activity and to check the background of the company / businesses offering loans online or through mobile apps.
According to the RBI, legitimate public lending activities may be undertaken by banks, non-bank financial corporations (NBFCs) registered with the RBI, and other entities regulated by state governments under statutory provisions, such as laws on the loans of money of the states concerned.
To ensure transparency, the central bank added that users should never share copies of KYC documents with unidentified persons, unverified or unauthorized mobile apps, and should report such apps or bank account information associated with the apps. to relevant law enforcement agencies. Borrowers can also use the sachet portal (https://sachet.rbi.org.in) to file a claim online.
The Reserve Bank of India has also demanded that digital lending platforms used on behalf of banks and NBFCs disclose the names of banks or NBFCs to borrowers upfront. The names and addresses of NBFCs registered with the central bank can be accessed on the official RBI website via the link: https://www.rbi.org.in/Scripts/BS_NBFCList.aspx. Additionally, the Central Bank Regulated Entities Complaints Portal can be accessed through the link: https://cms.rbi.org.in, according to the Reserve Bank of India.