The Reserve Bank of India (RBI) is taking strong steps to address the problem of unauthorized digital lending apps. RBI Governor Shaktikanta Das has announced that the central bank will set up a public list of all digital lending apps that are approved and regulated by entities like banks and non-banking financial companies (NBFCs).
This new list will show which apps are officially recognized by the RBI and follow the rules. The aim is to help consumers tell the difference between legitimate and unauthorized loan apps, reducing the risk of financial fraud.
Governor Das highlighted the importance of this move. He said, “Creating a public list of digital lending apps will help people make informed choices. It will also help us address the issue of unauthorized lending apps that have caused a lot of problems for borrowers.”
This action comes in response to the increasing number of illegal lending apps that have taken advantage of people with high-interest rates and harsh collection methods. Last year, the government banned 94 illegal apps, but some were later allowed back after meeting the required standards.
The new list will require regulated entities to regularly update and report information about their digital lending apps. This will provide a clear and transparent record of all approved apps, making it easier for consumers to check if an app is genuine.
Consumers are advised to check the list before using any loan app. Apps not listed should be treated with caution. If anyone suspects they have encountered a fake loan app, they should report it to the RBI or law enforcement.
The RBI’s efforts to address unauthorized digital lending apps show its dedication to improving financial safety and consumer protection. By increasing transparency and oversight, the RBI aims to create a safer and more reliable digital lending environment.