RBI To Regulate Digital Lending Platforms, Says Shaktikanta Das The RBI governor suggests that the customers of unregistered digital lending platforms should approach local police in case of any issue
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Shaktikanta Das, the Reserve Bank governor, on Thursday said that RBI will soon come out with a regulatory architecture for digital lending platforms, many of which are unauthorized and illegal. He was speaking at the iconic week celebration as part of the 'Azadi Ka Amrit Mahotsav' to mark the 75th anniversary of India's independence, organized by the central board of indirect taxes and customs.
While delivering a lecture on 'Indian businesses', Das said, "I think very soon we will be coming out with a broad regulatory architecture which should be able to address the challenges that we are confronted with regard to lending through digital platforms, many of which are unauthorized, unregistered and illegal."
Post announcement of monetary policy, the RBI governor said that most of the digital lending apps are not registered with the central bank and operate by themselves. He also suggests that customers borrowing from unregistered digital lending apps should approach the local police in case of any issue.
He said, "It is my humble request to all those using such apps to first check if the app is RBI registered or not. If the app is RBI registered, the central bank will act immediately in case of any misdoing, I assure you."
As per available reports, the global digital lending platform market size was valued at $5.58 billion in 2019 and is expected to reach $20.31 billion by 2027 at a CAGR of 16.7 per cent. The surveys revealed that pandemic increased the fraudulent cases in digital lending platforms and it is also said that the banking and lending industry is 300 times more likely to face a cyber-attack than any other sector.