RBI on Friday has cautioned that reputable public lending activities can be undertaken by Banks, Non-Banking Financial Companies (NBFCs) registered with RBI and other entities who are regulated by the State Governments beneath statutory provisions, such as the funds lending acts of the concerned states.
Members of public are hereby cautioned not to fall prey to such unscrupulous activities and confirm the antecedents of the enterprise/ firm supplying loans on-line or by way of mobile apps. Moreover, shoppers must by no means share copies of KYC documents with unidentified persons, unverified/unauthorised Apps. One must report such Apps/Bank Account data connected with the Apps to concerned law enforcement agencies or use Sachet portal to file an on-line complaint.
RBI issued a statement as there have been reports about people/little companies falling prey to increasing quantity of unauthorised digital lending platforms/Mobile Apps on promises of acquiring loans in swift and hassle-no cost manner. These reports also refer to excessive prices of interest and more hidden charges becoming demanded from borrowers adoption of unacceptable and higher-handed recovery techniques and misuse of agreements to access information on the mobile phones of the borrowers.
RBI has also mandated that digital lending platforms which are made use of on behalf of Banks and NBFCs must disclose name of the Bank(s) or NBFC(s) upfront to the shoppers. The names and addresses of the NBFCs registered with the Reserve Bank can be accessed right here and the portal for filing complaints against the entities regulated by the RBI can be accessed by way of https://cms.rbi.org.in.