last few years There has been a significant increase in the number of companies offering instant loans. These companies transfer the loan amount to your account instantly. Most of these finance companies give loans through the app itself. Later when it comes to debt recovery, they treat the customers very badly. There are constant complaints from the customers regarding their arbitrariness. Reserve Bank of India to curb the arbitrariness of these companies (RBI) Will issue guidelines for digital lending in the next two months. This information was announced by the Governor of Reserve Bank of India, Shaktikanta Das on Friday. Doing it.
Guidelines will be issued in two months
Shaktikanta Das said there were several comments on the suggestion of the working group on digital lending. His investigation is complete. This will be discussed internally and the guide will be finalized in a month or two. The Reserve Bank has been continuously receiving complaints from aggrieved customers of digital lending apps and platforms. Shaktikanta Das said that we have received these complaints many times through social media. We investigate such cases immediately.
Consumers are mistreated
These companies give instant loans to customers on the app, but their interest rates are very high. Consumers take loans from such apps without due diligence. They use unethical methods and coercion to recover from customers who are unable to repay their loans on time. Following reports of higher interest in lending and recovery through China’s app, the Reserve Bank set up a working group on January 13, 2021. The group was headed by RBI Executive Director Jayant Kumar Das. The group submitted its report in November last year.
The working group is of the view that only certified fintech companies should be allowed to lend. All fintech companies, including pay-as-you-go (BNPL) companies, will have to follow the guidelines. The guidelines will also be applicable to BNPL players such as Capital Float, Slice, ZestMoney, Paytm, BharatPe and UNI.