RBI brings in norms to curb malpractices by lending apps2 min read . Updated: 24 Jun 2020, 05:33 PM IST
- RBI has made banks or NBFCs directly responsible for the actions of the digital platforms they have tied up with.
- The regulator said that digital platforms and lenders must make adequate efforts towards the creation of grievance redressal mechanism.
To curb malpractices by digital lending platforms, the Reserve Bank of India (RBI) has come up with a list of measures that lenders and their partner platforms will need to follow. The regulator came up with the instructions after it received several complaints against the lending platforms relating to exorbitant interest rates, non-transparent methods to calculate interest, harsh recovery measures, unauthorized use of personal data and bad behavior.
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