Digital lending: Norms approved by RBI
Aug 12, 05:08

The RBI approved 12 regulations for digital lenders on August 10. The most important one was that all loan disbursals and repayments should happen to and from bank accounts of customers and lenders, without passing through a nodal account, to avoid money laundering. RBI has also asked for customers to be given a cooling-off period to opt out of the loan. It has mandated that no data be collected and credit limit not increased without the explicit consent of the borrower. Most importantly, the central bank has reiterated that all lending, including that done over merchant platforms, must be reported to credit information bureaus for transparency.