Delhi HC: Woman's Right to a Shared Household Does Not Allow Indefinite Occupation of In-Laws' Home  ||  Delhi HC: Director Disputes in a Company Do Not Qualify as Genuine Hardship to Delay ITR Filing  ||  Delhi HC: ECI Cannot Resolve Internal Disputes of Unrecognised Parties; Civil Court Must Decide  ||  Bombay High Court: Senior Citizens Act Cannot be Misused to Summarily Evict a Son  ||  Chhattisgarh HC: Service Tax Refund Can't Be Denied on Limitation When Payment Was Made During Probe  ||  Supreme Court: If Tribunal Ends Case For Unpaid Fees, Parties Must Seek Recall Before Using S.14(2)  ||  SC: Article 226 Writs Jurisdiction Cannot be Used to Challenge Economic or Fiscal Reforms  ||  Supreme Court: Hostile Witness Testimony Can't Be Discarded; Consistent Parts Remain Valid  ||  Supreme Court: GPF Nomination in Favour of a Parent Becomes Invalid Once the Employee Marries  ||  Supreme Court: Candidate Not Disqualified if Core Subject Studied Without Exact Degree Title    

RBI cautions against unauthorised Digital Lending Platforms/Mobile Apps- (Reserve Bank of India) (23 Dec 2020)

MANU/RPRL/0198/2020

Banking

There have been reports about individuals/small businesses falling prey to growing number of unauthorised digital lending platforms/Mobile Apps on promises of getting loans in quick and hassle-free manner. These reports also refer to excessive rates of interest and additional hidden charges being demanded from borrowers; adoption of unacceptable and high-handed recovery methods; and misuse of agreements to access data on the mobile phones of the borrowers.

Legitimate public lending activities can be undertaken by Banks, Non-Banking Financial Companies (NBFCs) registered with RBI and other entities who are regulated by the State Governments under statutory provisions, such as the money lending acts of the concerned states. Members of public are hereby cautioned not to fall prey to such unscrupulous activities and verify the antecedents of the company/ firm offering loans online or through mobile apps. Moreover, consumers should never share copies of KYC documents with unidentified persons, unverified/unauthorised Apps and should report such Apps/Bank Account information associated with the Apps to concerned law enforcement agencies or use Sachet portal to file an on-line complaint.

Reserve Bank has also mandated that digital lending platforms which are used on behalf of Banks and NBFCs should disclose name of the Bank(s) or NBFC(s) upfront to the customers.

Tags : UNAUTHORISED   DIGITAL LENDING   MOBILE APPS  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved