RBI warns public about shady digital lending apps promising quick finance

Informs public about exorbitant rates of interest charged by such apps, and use of muscle power to recover dues; guides on reporting rogue service providers

The Reserve Bank of India (RBI) on Wednesday warned consumers against the questionable digital money lending entities that promise loans in seconds at exorbitant rates of interest, and then use muscle powers to recover dues.  

“Members of public are hereby cautioned not to fall prey to such unscrupulous activities and verify the antecedents of the company/ firm offering loans online or through mobile apps," the central bank said in a statement. 

“Moreover, consumers should never share copies of KYC documents with unidentified persons, unverified/unauthorised Apps and should report such Apps/Bank Account information associated with the Apps to concerned law enforcement