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Explained: What are RBI's new norms for digital lending in India?

Digital lending involves giving and recovering loans through web platforms or mobile apps. Here are the new regulations and why they have been introduced

Reserve Bank of India, RBI
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The RBI has mandated these regulations in order to check mis-selling to customers, unethical business conduct, exorbitant interest rates, and excessive engagement of third parties in digital lending transactions.

BS Web Team New Delhi
The Reserve Bank of India (RBI) has instituted a framework to regulate digital lending. Its new regulations are based on recommendations from a working group set up in January 2021 on ‘Digital lending including lending through online platforms and mobile apps’ (WGDL). What are the new regulations and why have they been introduced?

Who are digital lenders?

RBI has categorised digital lenders into three groups:
  • Entities which are regulated by the RBI and are allowed to carry out lending business.
  • Entities that are authorized to carry out lending as per other statutory or regulatory provisions but are not regulated by the

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First Published: Aug 19 2022 | 8:10 PM IST

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