The Reserve Bank of India (RBI) has sent a list of digital lending apps to government that are being used by non-banking finance companies (NBFCs), Governor Shaktikanta Das said in post monetary policy report press conference on February 8.
"RBI primarily certifies NBFCs, who then use a variety of digital lending apps. We asked NBFCs to share a list of those apps that they are using, as several illegitimate apps in the market promise to lend," said Das.
Furthermore, RBI Deputy Governor M Rajeshwar Rao said the RBI hasn't banned any digital lending app. "We have shared a list of apps regulated by us with the government," said Rao.
Earlier, on February 7, the finance ministry said in the Parliament that the central bank has also issued a master circular, under which banks and financial institutions have been advised to follow certain customer identification procedures for opening of accounts and monitoring transactions of suspicious nature to avoid its misuse for money laundering.
Further, the RBI has issued digital lending guidelines in September 2022, which advises measures including due diligence of loan service providers (LSPs), direct disbursal of loan from bank account of lender to bank account of the borrower without any pass-through/pool or third-party account to avoid layering, publishing of the list of DLAs and LSPs engaged by REs and details of activities to avoid anonymity.
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