RBI working group suggests separate law to prevent illegal digital lending via apps

The RBI working group has suggested the enactment of separate legislation to prevent illegal digital lending through 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.