The Reserve Bank of India (RBI) has constituted a working group on digital lending including online platforms and mobile apps.
- Objective: The objective of this working group is to study all aspects of digital lending activities in the regulated financial sector as well as by unregulated players.
- This is to ensure that an appropriate regulatory approach is put in place.
- Reasons: According to the RBI, digital lending has the potential to make access to financial products and services more fair, efficient and inclusive. From a peripheral supporting role a few years ago, FinTech-led innovation is now at the core of the design, pricing and delivery of financial products and services.
- The working group consists of both internal and external members.. It will be led by Jayant Kumar Das.
- The working group will evaluate digital lending activities and assess the penetration and standards of outsourced digital lending activities in RBI regulated entities; identify the risks posed by unregulated digital lending to financial stability, regulated entities and consumers; and suggest regulatory changes to promote orderly growth of digital lending.
- Internal members: RBI executive director Jayant Kumar Dash; RBI Chief General Manager-in-Charge, Department of Supervision, Ajay Kumar Choudhary; RBI Chief General Manager, Department of Payment and Settlement Systems; P. Vasudevan and RBI Chief General Manager, Department of Regulation, Manoranjan Mishra.
- External members: Vikram Mehta, Co-founder, Monexo Fintech, and Rahul Sasi, Cyber Security Expert & Founder of CloudSEK.
