RBI to crack whip on recovery agents, calls for restricting messaging apps

Digital lending apps extend small amounts at exorbitant rates. Payment delays invite messages to customer or close family members, often with sensitive information such as Aadhaar and PAN Card scans

recovery agents

Illustration: Binay Sinha

Anup RoySubrata Panda Mumbai
The Reserve Bank of India’s (RBI’s) working group on digital lending is expected to recommend measures to rein in excesses by recovery agents, particularly things like damaging the reputation of customers for late payment of small amounts. 
Sources familiar with the thinking of the RBI said the central bank was strongly of the opinion that immediate measures be taken to restrain recovery agents from using private messaging apps to send texts to those in the contact list of a late payer or defaulter. 

First Published: Jan 19 2021 | 6:25 PM IST

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