Meanwhile, the government has appointed a special committee to assess the impact of any further waiver of interest, etc on the banking system. Recoveries key to revivalThe coronavirus pandemic is proving to be an existential threat to the lending sector and more so, for digital lending players. The cost in terms of time, effort and money in dispute proceedings far outweigh the reward of the final resolution. Technology-driven resolution in a contactless societyConsidering the virus-forced lockdown, the incumbent setup of in-person or physical dispute resolution has come to a standstill and is expected to continue for the foreseeable future. With so much stress on the financial system and the lending platforms all around, the question is not whether digitized dispute resolution should be integrated or not, but ‘by when’.

Source: Mint September 13, 2020 05:59 UTC