The RBI working group has suggested the enactment of separate legislation to prevent illegal digital lending through apps.
The panel also made several other suggestions to regulate digital lending.
The working group was constituted by RBI in January 2021.
The group was tasked with issues related to digital lending, including lending through online platforms and mobile apps.
New Delhi: A Reserve Bank of India (RBI) working group has suggested the enactment of separate legislation to prevent illegal digital lending through apps. The panel also made several other suggestions to regulate digital lending.
One of the suggestions made by the group subjects digital lending apps to a verification process by a nodal agency and establishing a Self-Regulatory Organisation (SRO) covering the participants in the digital lending ecosystem.
The thrust of the report has been on enhancing customer protection and making the digital lending ecosystem safe and sound while encouraging innovation," RBI said in a release.
The working group was constituted by RBI in January 2021 under the chairmanship of Executive Director Jayant Kumar Dash. The group was tasked with issues related to digital lending, including lending through online platforms and mobile apps