RBI pulls up banks, NBFCs for non-transparency in digital loans

Apex bank says digital platforms claim to offer hassle-free loans to individuals and small traders, but don't disclose who they are associated with

The Reserve Bank of India (RBI) on Wednesday said digital lending platforms must disclose to the customers which bank or non-bank financial company (NBFC) these platforms are working for so that customers availing so called ‘hassle free’ loans are not harassed later. 

Mounting a sharp critique on banks and NBFCs, the central bank noted that these digital platforms, of which many have emerged now, claim to offer hassle free loans to retail individuals, small traders, and other borrowers, but don’t disclose who they are associated with.  

Banks and NBFCs are either direct floaters of these platforms, some of whom are