RBI constitutes working group to develop and regulate digital lending

The six-member panel comprising four RBI internal members and two external members is expected to submit its report within three months

With frauds in digital lending space coming into sharp relief, the Reserve Bank of India (RBI) on Wednesday constituted a working group to develop and regulate digital lending, including lending through online platforms and mobile applications (apps).

The working group will study all aspects of digital lending activities in the regulated financial sector as well as by unregulated players, said the RBI. “Recent spurt and popularity of online lending platforms/mobile lending apps has raised certain serious concerns which have wider systemic implications,” said the RBI in a statement.

The six-member panel comprising four RBI internal members and two external members is expected