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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

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The RBI warned that "outsourcing of any activity by banks/ NBFCs does not diminish their obligations, as the onus of compliance with regulatory instructions rests solely with them.".

Anup Roy Mumbai

3 min read Last Updated : Jun 25 2020 | 2:15 AM IST

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

Topics : NBFCs RBI Digital loans

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