RBI issues Digital lending norms to curb malpractices

RBI has issued the regulatory framework to make digital lending safe for customers.

The RBI has mandated that digital loans must be credited directly in the bank accounts of borrowers and not through any third party.

Any fees, charges, payable to Lending Service Providers in the credit intermediation process shall be paid directly by Regulated Entities and not by the borrower. Automatic increase in credit limit without explicit consent of borrower is prohibited.