the Reserve Bank of India has mandated that the lending business can only be carried out by entities regulated by it or those permitted under the Law.
With the advancement of Technological Innovation, there has been massive development in the digital lending ecosystem which has resulted in extending several credit services. However, this growth has led to misselling to unsuspecting customers, unethical business conduct by digital lenders, and excessive engagement of third parties.
The third-party apps which were lending monies to the individuals will not be able to charge fees/commissions as they were doing earlier.
The rules will also ensure that the data being collected by the third-party apps is on a need basis only and the data so collected will need an express consent of an individual.
