The statement assumes significance in the wake of recent incidents in which some people who borrowed through these apps have been forced to commit suicide and a young pregnant woman was crushed to death by recovery agents last week. Mahindra Finance Who financed his father’s tractor in Bihar.
Over the past two years, when the negative loan app incidents started to surface, the central bank made several changes to the rule book, including what loan apps should disclose in advance. NBFCOr the money was being disbursed by the bank.
Why? reserve Bank of India The governor said, while the recently introduced guidelines for lending apps do not introduce a first loss default guarantee, we do not intend to penalize or deter anyone else’s activity. Das said that we are just saying that please follow the traffic rules.
“The Reserve Bank will continue to support and welcome this (digital lending). If you take just one step forward we will take two steps forward to discuss with you. But having said that, these innovations must also be responsible and the consumer has The efficiency and flexibility of the financial system should be increased while benefiting.
“A robust internal product and service assurance framework coupled with fair and transparent governance will go a long way in protecting the interests of customers and ensuring the long-term sustainability of the fintech entities themselves,” Das said.