Business

RBI To Create Open Database Of Online Lending Apps To Curb Scams

To tackle issues with unauthorized online lending apps (DLAs), the Reserve Bank of India (RBI) will create a public repository. This new system will list DLAs used by regulated entities, helping consumers verify the legitimacy of digital lenders.

RBI Governor Shaktikanta Das announced that regulated entities will report and update information about their DLAs in this repository. This move aims to help consumers spot unauthorized online lending apps.

Union Finance Minister Nirmala Sitharaman recently urged financial regulators, including the RBI, to enhance measures against unauthorized online lending. At the 28th Financial Stability and Development Council (FSDC) meeting, she stressed the need for regulators to remain vigilant and proactively address risks to financial stability amid current macro-financial conditions.

Also Read: Rising Urban, Rural Demand To Take GDP To 7.2 PC: RBI Forecasts

Earlier this year, the RBI provided a list of official digital lending apps to the Ministry of Electronics and Information Technology (MeitY). MeitY has published this list on its website to help consumers find legitimate lenders and avoid exploitation by illegal apps.

Illegal lending apps not only charge predatory interest rates but also use unethical recovery methods. Reports highlight severe harassment, including threats involving personal data like intimate photographs used for coercion.

From September 2022 to August 2023, Google removed over 2,200 digital lending apps from its Play Store. The company updated its policy to only allow apps published by RBI-regulated entities or those partnered with them.

Shibra Arshad

Recent Posts

Adani Group Stocks Recover As Sensex nd Nifty Post Gains

After a major sell-off earlier in the week, Adani Group stocks, led by Ambuja Cements…

22 minutes ago

Sensex Soars 1,961 Points, Nifty Gains 557 In Broad-Based Market Rally

A sharp rally in financial stocks and encouraging US labor market data fueled the uptrend.…

26 minutes ago

PM Modi Engages In 31 Bilateral Meetings During Three-Nation Tour

PM Narendra Modi held 31 bilateral meetings and discussions during his visit to Nigeria, Brazil,…

56 minutes ago

SC Reserves Verdict On Challenge To ‘Socialist’ And ‘Secular’ In Preamble

These words were added during the 42nd Amendment in 1976, under the tenure of Prime…

1 hour ago

CPS Appointment Cancellation: Supreme Court Issues Notice to Himachal Pradesh Government

During the hearing, the Supreme Court clarified that the six MLAs removed as Chief Parliamentary…

1 hour ago

BGT 2024-25: India 150 All Out, Bumrah’s 4-17 Rocks Australia To 67/7 On Day One

Bumrah’s 4-17, backed by Mohammed Siraj and debutant Harshit Rana, helped India seize the momentum…

2 hours ago