Corporate Laws

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Aug 12, 2022

RBI Digital Lending Rules: The Reserve Bank of India (RBI) has issued strict guidelines for digital lending in the country. Borrowers are set to benefit from the new RBI guidelines directed at curbing rampant malpractices in the digital lending ecosystem.

The RBI has issued the guidelines based on recommendations of a working group for digital lending which submitted its report in November 2021. You can read more details of the guidelines issued by the RBI here. In this article, we take a look at what the borrowers should know before going for a loan in view of the new lending norms issued by the RBI.

Legal experts say that borrowers should know the safeguards assured by the RBI’s new regulatory framework for digital lending.

“These norms were required to protect the interest of the borrowers and to ensure that the money cycle is taking place through legitimate apps with proper KYC structure and audit mechanism as a lot number of fake applications are being reported and the end user incur losses.

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