Keeping in mind the rapidly increasing fraud and illegal behavior related to digital lending in India, RBI has issued new norms regarding this. In the new norms issued regarding digital lending, RBI has taken special care of the interests of customers. According to the new norms of RBI, now only regulated companies or institutions will be eligible to give digital loans to customers. Also, all the information about the loan will have to be given to the credit info companies. Apart from this, while giving loans to digital lending companies or institutions, customers will have to give information about all other expenses as well.
You should also know these important things...
As per the extant guidelines, if any complaint lodged by a customer is not resolved within the stipulated maximum period of 30 days, he can file a complaint under the Reserve Bank Integrated Ombudsman Scheme 7.
A good system has to be put in place to deal with the complaints lodged by the customers.
RBI has said in its guidelines that no digital lending company or institution will be able to disburse loans without the consent of the customer.
According to RBI, companies have to meet a number of standards in giving loans.
Companies will have to inform the customer about all types of charges at the time of loan application.
RBI also said that the company giving digital loan cannot increase the loan limit without the consent of the customer.
According to the guidelines of the Reserve Bank, the responsibility of protecting all the data related to the personal information of the customer will also be the responsibility of the lender.
Along with this, the organization of any digital lending company will not store the personal information of the customers themselves.
All loan repayment and repayment transactions should take place only between the borrower and the bank accounts of the regulated financial entity. It should not be circumvented through the pool account of any lending service provider or any third party.
In the new guidelines of RBI, it has also been said that if any fee is charged by digital lending apps, then it will have to be paid by the lending bank or financial institution. The burden of any such fee should not be passed on to the borrower.
The Reserve Bank has said that only that data should be collected through digital lending apps, which is necessary and its audit trail should also be clear. Apart from this, the approval of the borrower for data collection will also have to be taken in advance.
Know the reason behind strictness
There were frequent complaints to the RBI against digital lending apps. In view of this, the Reserve Bank had constituted a committee in January last year. Which was given the task of studying the irregularities of such loan apps and recommending measures to check them. It is known that digital lending apps give loans easily and then it becomes equally difficult to get out of their trap.
Disadvantages of getting bogged down in loan apps
- Such apps charge many times more interest than loan banks.
Loan apps charge manifold penalty for not paying the installments on time.
Credit score gets badly affected when you take a loan from instant loan apps.
Most of the apps are not registered and their job is only to do fraud.
- Such apps steal sensitive information from customers' phones before giving loans.
- Such apps take access to the pictures as well as the numbers saved in the phone of the borrower.
Apart from this, if there is a delay in repaying the installments from the borrower, they start blackmailing them.
- Many times apps deduct huge taxes and charges even before giving loan.
Along with this, many times cases of abusing and abusing have also come up by calling with the borrower.