Borrow money from digital loan app? RBI lists things to keep in mind to avoid fraud

The Reserve Bank of India has suggested ways to prevent loan app scams for customers who borrow money from unregistered digital loan apps. At a press conference scheduled after the bi-monthly meeting of the Monetary Policy Committee a few days ago, RBI Governor Shaktikanta Das said such borrowers should contact the local police if there is any problem. The central bank made it clear that day that it would only take action against entities registered with it. A few days later, the RBI Governor also said that an extensive regulatory infrastructure would soon be put in place to manage these applications.

Das said the RBI website has a list of apps registered on the website. He asked people to check whether the app is registered with RBI or not before using these apps. If the application is registered, the central bank will take immediate action in case of wrongdoing.

The RBI Governor said that whenever it receives a complaint from a customer, the central bank directs customers of such unregistered apps to contact the local police, who will investigate and take necessary action on the matter. .

The RBI website has a list of applications registered on the website, the governor said, adding that police in many states acted against wrongdoers in accordance with the provisions of the law.

“It is my humble request to all who are using such apps to check first whether the app is RBI registered or not. , I assure you,” Das said in the usual post-political press interaction. His comments came at a time when a slew of suspected suicides abetted by harassment from officers or law enforcement officials ready are reported.

RBI to come out with regulatory framework for digital lending apps

On June 10, Thursday, Shaktikanta Das said during the landmark week celebrations hosted by the Central Board of Excise and Customs (CBIC) that a broad regulatory architecture is to be developed soon with digital lending apps.

“I think very soon we’re going to come out with a broad regulatory architecture that should be able to address the challenges we face with lending through digital platforms, many of which are unlicensed, unregistered and, should we I say, illegal,” Das added.

According to a report released by the RBI in November last year, 600 out of 1,100 loaner apps available for Android users in India in no less than 81 app stores are currently not legal. This was reported on the database from January 1, 2021 to February 28, 2021.

Sachet, a portal created by the Reserve Bank under the State Level Coordinating Committee (SLCC) mechanism to register complaints from the public, has received a dramatically increasing number of complaints against digital lending apps. The majority of complaints relate to loan applications promoted by entities not regulated by the Reserve Bank, such as non-NBFC companies, unincorporated bodies and individuals, according to the report.

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