Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

India’s RBI Tightens Rules on Digital Lending After Complaints

Aug. 10, 2022, 1:33 PM

India’s central bank released guidelines for digital lending, targeted at bringing transparency and data protection to the business after complaints started mounting over unfair recovery practices, with many players capitalizing on borrowers’ lack of financial literacy.

The Reserve Bank of India released the guidelines Wednesday, which direct operators to display all inclusive costs of the digital loan as an annual percentage rate upfront and bring periodic review of the conduct of lending service providers engaging in recovery.

The rules also prohibit companies from automatically increasing credit limits without the explicit consent of borrowers and also directs these apps to promote ...