Home Finance RBI panel recommendations will promote growth of digi-lending: Industry

RBI panel recommendations will promote growth of digi-lending: Industry

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RBI panel recommendations will promote growth of digi-lending: Industry

The recommendations made by the RBI working group on digital lending, including lending through online platforms and mobile apps, will promote orderly growth of sector, industry players said.
In a comprehensive report, the Working Group constituted by the RBI has made several recommendations, including a separate legislation to prevent illegal digital lending activities, subjecting digital lending apps to a verification process by a nodal agency and establishing a self-regulatory organisation (SRO) covering the participants in the digital

lending ecosystem.
Emkay Global Financial Services in a note said the proposals appear to be largely constructive for the digital lending space and are on expected lines.
That said, the introduction of regulations may moderate the growth rate of digi-loans, which have seen strong growth in a short term in countries like China and India (P2P), it said.
“However, the regulations would facilitate orderly growth in the long run, similar to MFIs post .

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