Digital Loan Mobile Apps: With the growth of digital transactions, many such mobile apps have come which are giving you loan at their level. Let us tell you that financial trading of these mobile apps is completely illegal. At the same time, the country’s top bank i.e. Reserve Bank of India is now working on bringing them under the purview of the law. A working group of RBI has proposed to make strict rules against mobile apps for lending.
The working group of RBI has prepared a proposal for these apps, in which it has been said that all the stakeholders of the industry should be made a nodal agency. The nodal agency will verify them. At the same time, it has also been suggested to form a Self-Regulatory Organization. Now the SRO will have to include all the companies present in the digital lending ecosystem.
The Reserve Bank of India (RBI) in January constituted a working group on digital lending, including online platforms and mobile apps, under the chairmanship of its executive director Jayant Kumar Das. In which the RBI had taken this step in view of the increasing incidents of extortionate loan recovery.
This working group has suggested in its report that a nodal agency be set up to verify the balance sheets of lending companies and the technical branch of the lending digital app. The group will also maintain a public register of Verify apps on its website.
According to the report of the working group, between January 1 and February 28, there were about 1,100 lending apps available for Indian Android users. Of these, 600 were illegal.
According to the information, the working group has also suggested a separate law to prevent illegal activities related to digital loans. Apart from this, the committee has also suggested to lay down certain technology standards and other rules, which every company entering the digital loan section will have to follow.
The working group also recommended that any loan amount should be deposited directly into the borrower’s bank account and not in the mobile wallet of an app or anywhere else. Also, EMI on the loan should also be taken from the bank account itself and the system of depositing it on the app should end.
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