RBI suggests customers to approach local police for issues related to unregistered digital lending apps

Customers borrowing from unregistered digital lending apps should approach the local police in case of any issues, Reserve Bank Governor Shaktikanta Das said on Wednesday, clarifying that the central bank can only take action against entities registered with it. will take action. In the remarks that come in the wake of alleged suicides due to harassment by agents or executives of lending apps, Das said most of the digital lending apps are not registered with the central bank and are self-operated.

Das said whenever a complaint is received from a customer, the central bank directs the customers of such unregistered apps to approach the local police, which will investigate and take necessary action on the issue.

reserve Bank of India The website has a list of apps that are registered with it on the website, the governor said, adding that police in many states have taken action against the wrongdoers as per the provisions of the law.

It may be noted that a series of alleged suicides in the recent past have been attributed to harassment by debt recovery agents or acting on their behalf. digital lending Apps.

At the time of borrowing, a borrower consents to the sharing of personal information such as telephone contact book, thereby creating a situation where the borrower is defamed in front of his acquaintance, leading to extreme measures.

Das said, “My humble request to the users of such app is to first check whether the app is RBI registered or not. If the app is RBI registered, the central bank will take immediate action in case of any wrongdoing, I assure you.” Customary post-policy press interaction.

This is not the first time that issues have surfaced against such apps. A few years ago, a series of suicides and reports of harassment prompted the central bank to launch a study on digital lending platforms.

Das said the RBI has also received reports and comments based on this and at present, the report is in the “advanced stage” of investigation. After the investigation, the central bank will issue guidelines or directions in this matter.

Asked whether the recent cancellation of licenses for five non-bank lenders by the central bank was linked to nexus with digital apps and indulging in bad practices, the governor declined to elaborate on the exact issues.

Recognizing that customers are also receiving communication as SMS Or calling on banks, Das requested borrowers not to share personal details such as one-time passwords or CVV numbers with any agents who may misuse it for fraudulent activities.

He said that if a customer wishes, he can check with his bank branch to ascertain the veracity before proceeding further.

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