The Reserve Bank of India (RBI) has taken stern action after allegations of lending and cheating people through mobile apps in various cities across the country. An executive committee was set up on January 13 to look into the matter.
According to the RBI, the executive committee will work on digital loans, including lending through online platforms and mobile apps. The committee will review the loan process and consider how to handle it.
The committee will monitor the movements of digital lending institutions. Will study all types of processing, starting with filling out the form. The RBI said in a statement that digital loans in business are a good move. But there is a risk of more fraud. The RBI also said that the central bank supports the monitoring of loans through the app and ensures data security, confidentiality, consumer protection and the issuance of new digital loans by the central bank.