The Reserve Bank of India’s recently released rules on digital lending aim to strike a balance between innovation and inclusion while ensuring that regulatory arbitrage is not exploited to the detriment of customer interest, said Deputy Governor M Rajeshwar Rao, reported Business Standard.
“Another underlying theme of this regulatory framework is that the onus of complying with the regulatory guidelines rests squarely with the regulated entities and they will have to ensure that the loan service facilitator and the digital lending apps with whom they have outsourcing tie-ups function within regulatory ecosystem not just in letter but also in spirit,” Rao said at an event organised by ASSOCHAM on Thursday.
The banking regulator on August 10 issued guidelines for digital lending to mitigate concerns from credit delivery through such lending.
The guidelines aimed to firm up the regulatory framework for such activities. The RBI has specified that the lending business can only be carried out by entities regulated by it or those permitted under law.