RBI Whitelist of Digital Lending Apps and Borrower Safety
Why in the news
To protect consumers, RBI put out a public whitelist of authorised digital lending apps.
Key facts
- Registered DLAs follow Digital Lending Directions, the Fair Practice Code and disclosures such as the KFS.
- Hidden charges: interest of 10-20% per month and heavy penalties.
- Data misuse: access to contacts and photos, shaming of family and friends, morphed images.
- Abusive recovery by agents; no proper loan documents.
Exam angle
- Whitelist publisher: RBI; mandatory disclosure: KFS.