RBI warns public about shady digital lending apps promising quick finance

The Reserve Bank of India (RBI) 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.

Moreover, consumers should never share copies of KYC documents with unidentified persons, unverified/unauthorized Apps and should report such Apps/Bank Account information associated with the Apps to concerned law enforcement agencies or use Sachet portal to file an on-line complaint.

The central bank said all digital lending platforms used on behalf of Banks and NBFCs should disclose the name of the bank or NBFC upfront to the customers. The RBI’s caution to the public comes after reports about individuals and small businesses falling prey to growing numbers of unauthorized digital lending platforms and mobile apps on promises of getting loans in quick and hassle-free manner.

Source: Business Standard