Reserve Bank of India: In the modern world, more and more people are taking out loans without hesitation in order to meet their demands. But this has also resulted in an increase in fraud by certain lending applications that take advantage of consumers. Shaktikanta Das, the governor of the RBI, recently gave important information about this matter in the RBI Monetary Policy.
Information from the RBI Governor
To address concerns with lending payment apps, RBI Governor Shaktikanta Das disclosed in a statement that the RBI has suggested setting up a public repository for digital loan applications. This announcement came during the monetary policy announcement. Regulated organisations (REs) will submit and update data regarding their Digital Loan Apps (DLAs) in this repository, according to Governor Das. The goal of this approach is to assist customers in recognising unauthorised loan apps. The RBI’s effort to stop illicit lending practices is regarded as a laudable move.
Will it be Difficult to Get a Loan?
It is expected that after the RBI makes its decision, it will be harder for people to get loans. In order to stop fraud, the RBI will henceforth keep a tight eye on these apps. Loans were previously issued quickly, which frequently resulted in exorbitant interest rates. The RBI hopes to stop these unethical tactics with this new policy.
Presence of Fraudulent Loan Apps
It is noteworthy that the RBI communicates information on bogus loan apps on a regular basis. A few of these apps leak users’ personal information; they are operated in China and Pakistan. In addition, a lot of lending apps charge unnecessarily high interest rates, which is against RBI guidelines. The RBI has determined that all lending applications must offer comprehensive information about their business practices and client data in light of these problems.
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