The government has been taking steps to curb the fast-growing digital lending sites and mobile processors over the past few months. The task force, set up by the Reserve Bank of India (RBI), has recommended a number of measures to regulate digital debt, including a separate law to curb illegal digital credit operations and verification of the inclusion of competitors in the digital credit environment.
The financial regulator and the government have begun efforts to regulate digital credit operations. As the need for this is high today, many of the recommendations of the working group set up in this regard will be implemented. The law and procedures for this may soon be tightened. Digital lending sites can no longer work on their own. To this end, the Reserve Bank and the government are going to create stricter regulations.
Credible sources said that the financial sector regulator and the government are in agreement on the need to streamline digital credit operations and that many of the working group’s recommendations could soon be determined in the laws and procedures for the sector.
The Reserve Bank of India’s working group has recommended in its report that loans should be made only through the bank accounts of digital lenders. The panel also recommended that the use of non-essential business communications for digital lending be governed by a code of conduct.
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