Shaktikanta Daso
Mumbai:
Warning against lending apps and their exorbitant prices, Governor Shaktikanta Das said on Tuesday, with the Reserve Bank saying it is not interested in penalizing operators or suppressing innovation, but wants them to follow the rules of the game. Follow up, Governor Shaktikanta Das said on Tuesday.
Addressing the third edition of the Global Fintech Summit here this evening, he said the intention of the central bank is not to punish or suppress anyone, but to ensure that everyone follows traffic rules.
The statement assumes significance in the wake of recent incidents in which some people who have borrowed through these apps have been forced to commit suicide and last week a young pregnant woman was crushed to death by recovery agents of Mahindra Finance. His father’s funding was financed. Tractor in Bihar.
Since the last two years, when negative loan app incidents started to surface, the central bank made several changes to the rule book, including requiring loan apps to disclose in advance whose NBFC or bank’s behalf the money was disbursed. Had been.
On why the RBI has not introduced the first loss default guarantee in the recently introduced guidelines for lending apps, the governor said, our intention is not to penalize anyone or stop anyone else’s activity. All we are saying is please follow the traffic rules, Mr. Das said.
“The Reserve Bank will continue to support and welcome this (digital lending). In fact, if you only take one step forward, we will take two steps forward to discuss with you. But having said that, these innovations should also be responsible and increase the efficiency and flexibility of the financial system while benefiting the consumer.
“A robust internal product and service assurance framework coupled with fair and transparent governance will go a long way in protecting the interests of customers and ensuring long-term sustainability of fintech entities,” Mr. Das said.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)