7,813 Complaints against Digital Lending Apps, Recovery Agents
A total of 7,813 complaints have been received against banks and non-banking finance companies (NBFCs) pertaining to digital lending apps and recovery agents under the 'Integrated Ombudsman Scheme' of the Reserve Bank of India (RBI) during the period 1 April 2021 to 3rd March this year.
 
Most of the complaints pertain to lending apps promoted by entities not regulated by RBI such as companies other than NBFCs, unincorporated bodies and individuals.
 
Major concerns raised in such complaints were issues of exorbitant interest and charges levied by digital lending apps and harassment of customers for loan repayments.
 
In a reply to a question in Lok Sabha on Monday, the finance ministry said that RBI had cautioned the general public not to fall prey to unscrupulous activities of unauthorised digital lending platforms/ mobile apps and verify the antecedents of the company offering such loans.
 
RBI has also issued advisories to state governments to keep a check on unauthorised digital lending platforms/ mobile apps through their respective law enforcement agencies.
 
RBI has constituted a Working Group on digital lending including lending through online platforms and mobile apps, to study all aspects of digital lending activities in the regulated financial sector as well as by unregulated players.
 
The thrust of the report has been on enhancing customer protection and making the digital lending ecosystem safe and sound while encouraging innovation.
 
RBI has introduced 'The Reserve Bank - Integrated Ombudsman Scheme, 2021' wherein complaints against banks and NBFCs regarding digital lending can be lodged. Under the said scheme, the Ombudsman shall have power to pass an award for any consequential loss suffered by complainant up to Rs20 lakh, in addition to, up to Rs1 lakh for the loss of the complainant's time, expenses incurred and for harassment/mental anguish suffered by the complainant.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
r_ashok41
2 years ago
RBI should give more publicity to these kind of activities so that aam aadmi is aware of it by newspaper/tv/or educating seminars
Array
Free Helpline
Legal Credit
Feedback