Reserve Bank of India Forms Group to Evaluate Digital Lending

The Reserve Bank of India (RBI) on Wednesday formed a working group to look at digital lending in the country, including lending through online platforms and mobile applications, it said in a statement.

“Recent spurt and popularity of online lending platforms/ mobile lending apps has raised certain serious concerns which have wider systemic implications,” the RBI said in its release.

The “Working Group” being set up by RBI will “study all aspects of digital lending activities” in both regulated and unregulated financial sectors, the banking regulator said. The group will comprise both internal and external members.

At least 10 Indian lending apps on Google’s Play Store breached Google rules on loan repayment lengths aimed at protecting vulnerable borrowers, according to a Reuters review of such services and more than a dozen users.