Reserve Bank constitutes a Working Group on digital lending including lending through online platforms and mobile apps by notification dated January 13,2021.
The Terms of Reference (ToR) for the WG would be as follows:
- Evaluate digital lending activities and assess the penetration and standards of outsourced digital lending activities in RBI regulated entities;
- Identify risks posed by unregulated digital lending to financial stability, regulated entities and consumers;
- Suggest regulatory changes, if any, to promote orderly growth of digital lending;
- Recommend measures, if any, for expansion of specific regulatory or statutory perimeter and suggest the role of various regulatory and government agencies;
- Recommend a robust Fair Practices Code for digital lending players, insourced or outsourced;
- Suggest measures for enhanced Consumer Protection; and
- Recommend measures for robust data governance, data privacy and data security standards for deployment of digital lending services.
