In a bid to protect customers from fraudulent players in the financial services sector, the Reserve Bank of India is creating a public repository of digital lending applications which will be available on its website. It is expected that this measure will put some check on the digitalised loan shark business.
“Media reports have highlighted continued presence of unscrupulous players in digital lending who falsely claim their association with RBI regulated entities (REs). Accordingly, to aid the customers in verifying the claim of digital lending apps’ (DLAs) association with REs, Reserve Bank is creating a public repository of DLAs deployed by the REs which will be available on RBI’s website,” Shaktikanta Das said on Thursday.
The repository will be based on data submitted by the REs (without any intervention by RBI) directly to the repository and will get updated as and when the REs report the details, i.e., addition of new DLAs or deletion of any existing application provider.
“Aim of RBI is to sensitise the public about unauthorized digital lending App’s and to prevent them from falling prey to digital fraud,” said M V Rao, Chairman, Indian Banks’ Association.
“The regulator’s plan to put in place a public repository for digital lending apps shows their focus on safeguarding the common man’s hard earned money,” said Umesh Revankar, Executive Vice Chairman, Shriram Finance Ltd.