Feedback on Report of Working Group on Digital Lending — need for observatory.
On November 18, 2020, RBI released the Report of the Working Group on digital lending including lending through online platforms and mobile apps and sought feedback on the same. This report and the feedback is expected to drive regulation making around digital lending.
CashlessConsumer submitted the following feedback and we are particularly worried about the preference by the working group to move towards self regulation.
In other news, recently a whistleblower raised concerns on evergreening loans in their microfinance subsidiary, which was related to a technical glitch.
CashlessConsumer intends to publish a citizens’ fact finding report based on our technical analysis of agent app that is said to be root cause of this issue.
The increased gaps in digital credit consumer protection, calls for an observatory, more so relevant when regulatory supervision is looking at prioritising industry self-regulation. Join us on Jan 8, 430 PM as we look back 2021 and discuss how digital credit must be made consumer friendly in 2022.
