Digital lending norms aim to protect customer interest: RBI's Rao

Deputy Governor says guidelines issued on August 10 aim to curb exploitation of regulatory arbitrage

The Reserve Bank of India’s recent norms on digital lending aim to strike a balance between innovation and inclusion while ensuring that regulatory arbitrage is not exploited to the detriment of customer interest, said Deputy Governor M Rajeshwar Rao.

“Another underlying theme of this regulatory framework is that the onus of complying with the regulatory guidelines rests squarely with the regulated entities and they will have to ensure that the loan service facilitator and the digital lending apps with whom they have outsourcing tie-ups function within regulatory ecosystem not just in letter but also in spirit,” Rao said at an