7,813 complaints against digital lending apps and debt collectors

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A total of 7,813 complaints were received against banks and NBFCs regarding digital lending apps and debt collectors under RBI’s in-app ombudsman scheme during the period 1 April 2021 to 3 March 2021. This year.

Most of the complaints relate to lending apps promoted by entities not regulated by the RBI, such as non-NBFC companies, unincorporated bodies and individuals.

The main concerns raised in these complaints were issues of exorbitant interest and fees charged by digital lending apps, and harassment of customers for loan repayment.

In a response to a question to Lok Sabha on Monday, the Ministry of Finance said RBI has warned the general public not to fall prey to unscrupulous activities of unauthorized digital lending platforms/mobile apps and to check the track record of the company offering such loans.

The RBI has also issued notices to state governments to monitor unauthorized digital lending platforms/mobile apps through their respective law enforcement agencies.

The RBI has set up a Task Force on Digital Lending, including lending via online platforms and mobile apps, to study all aspects of digital lending activity in the regulated financial sector as well as by unregulated players.

The goal of the report has been to improve customer protection and make the digital lending ecosystem safe and healthy while encouraging innovation.

The Reserve Bank of India (RBI) has introduced “The Reserve Bank – Integrated Ombudsman Scheme, 2021” in which complaints against banks and non-bank financial companies (NBFCs) regarding digital lending can be lodged. Under the said scheme, the Ombudsman will have the power to award compensation for any consequential loss suffered by the complainant up to Rs 20 lakh, in addition to, up to Rs 1 lakh for loss of time of the complainant, the expenses incurred and for harassment/mental anguish suffered by the complainant.

Disclaimer: Any information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect the opinions of Moneylife and therefore Moneylife is not responsible for the same. As news source and provider, IANS is responsible for the accuracy, completeness, relevance and validity of all information contained in this article.

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