India, March 17 -- The Government of India has issued a release:
Reserve Bank of India (RBI) had constituted a Working Group on Digital Lending including lending through Online Platforms and Mobile Apps. Based on its recommendations, RBI has issued regulatory guidelines on digital lending, which aims at firming up the regulatory framework for digital lending, including loans through mobile apps, while enhancing customer protection and making digital lending ecosystem safe and sound.
All the Regulated Entities (REs) are required to comply with the said guidelines on digital lending. Compliance to these guidelines are examined on sample basis during supervisory assessment and any non-compliance observed is taken up for rectification apart from initiating supervisory/ enforcement action, as deemed fit.
Ministry of Electronics and Information Technology (MeitY) issues directions for blocking of information, including fraudulent loan apps developed under Section 69A of Information Technology (IT) Act, 2000 after following the due process as provided in the Information Technology (Procedure and Safeguards for Blocking for Access of Information by Public) Rules, 2009.
Further, the Government and RBI have been taking up various initiatives from time to time to protect citizens from exploitation by unauthorized mobile loan apps. These inter-alia, include:
Police' and 'Public Order' are State subjects as per the Seventh Schedule of the Constitution of India. The States/UTs are primarily responsible for the prevention, detection, investigation and prosecution of crimes including illegal mobile applications through their Law Enforcement Agencies (LEAs). The Central Government supplements the initiatives of the States/UTs through advisories and financial assistance under various schemes for capacity building of LEAs.
This information was given by the Minister of State in the Ministry of Finance Shri Pankaj Chaudhary in Rajya Sabha today.
Disclaimer: Curated by HT Syndication.
