LocalCircles Impact: RBI moves to address fraudulent instant loan apps
Many of you participated on the survey of instant loan apps and their fraudulent and extortionist practices. Even though some of you may not have used them directly, you went the extra mile to understand about how your household staff, other vendors may have used them to take a short term loan.
Below is the link to the report which was escalated to RBI on July 5th:
RBI acts on LocalCircles escalation on instant loan apps
The big news is RBI has taken note of that and issued the Digital Lending norms yesterday. These guidelines require upfront disclosure of all inclusive costs, ban from access to contact lists, logs and media on the consumer's device and storage of all data in India. If this is implemented well, many of these fraudulent apps will have to shut illegitimate operations in India and legitimate entities that operate with transparency will get established in the area of instant loans. more
Below is the link to the report which was escalated to RBI on July 5th:
RBI acts on LocalCircles escalation on instant loan apps
The big news is RBI has taken note of that and issued the Digital Lending norms yesterday. These guidelines require upfront disclosure of all inclusive costs, ban from access to contact lists, logs and media on the consumer's device and storage of all data in India. If this is implemented well, many of these fraudulent apps will have to shut illegitimate operations in India and legitimate entities that operate with transparency will get established in the area of instant loans. more
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A good movement by the government and RBI. Simultaneously, they should ensure that their guidelines are meticulously complied with by all the agencies who are presently engaged in giving short term loans to their customers as also those who are planning to jump in into the business, which has become an easy way to dupe people once trapped! more
Aug 16
Good to hear this and also some other issues which LC can ask for a survey is the senior citizens issues so that it can be highlighted to the relevant authorities. more
Aug 11
Government should think of having control mechanisms on Apps which are now become part and parcel of several walks of life at a past pace. But unfortunately the control mechanisms are not follow suit with their pace. more
Aug 11
RBI was prompt. The Banks which are supposed to Implement these guide lines-most of them PSU are inefficient and not interested in the customer grievances. Therefore closure of these Apps may take many months and even face legal battles- for which our system is well known- .Lets hope for the best. more
Aug 11
