RBI group's suggestions will boost digital lending, say experts

Industry players say the new norms will enhance how lending apps and platforms ensure customer safety and move away from unethical conduct

Reserve Bank of India (RBI) working group’s recommendations will help create a safer and trustworthy ecosystem for both customers and lenders and further boost digital lending, said industry executives and experts.

They will help curb unfair practices and ensure responsible business execution.

Gaurav Chopra, founder and chief executive officer (CEO), IndiaLends, said the need to provide key fact statements, in a standardised format, including the annual percentage rate, will give better information to borrowers about the high percentage rate.

In the past year, there has been a drastic surge in digital lending, which has raised many question marks on business practices of lending