Will the uncovering of reckless and potentially fraudulent Chinese lending apps will drive the RBI to look at regulations for the sector?
“Borrowers must only borrow from firms that are either registered with the RBI or regulated by state governments. It has also mandated digital lending platforms to state the names and addresses of banks or non-banking finance corporations (NBFC), upfront.” This warning from a 23 December notification by the Reserve Bank of India is worrisome, to say the least, for the fast-growing but troubled industry of fintech lending.
The RBI’s caution follows several complaints about borrowers falling prey to a growing number of “unauthorized” digital lending platforms and mobile apps offering payday loans, and even reports of suicides by borrowers unable …
Arti is a former writer at The Morning Context. She previously worked with publications such as ET Prime, VCCircle, Firstpost and EETimes. Arti has keenly tracked the evolution of financial technology in India and written some of the defining pieces on the ecosystem as it birthed and matured. Even when not writing about it, she loves to dissect the revenue models, margins and regulations that are shaping the sector.
artisingh@mailtmc.com