The last few months have seen an exponential growth of digital loan sharks who have been ensnaring thousands of innocent consumers in need of small loans. Google Play Store has till last year removed 205 such unauthorised lending entities. Except for a handful of digital lenders like PayMeIndia, Dhani and IndiaLends, most of the digital lenders are illegal because they are not registered as banking or non-banking finance companies (NBFCs). The issue of ‘instant loan’ sharks operating without accountability needs to be quickly nipped in the bud. The RBI is proposing a new law on unauthorised digital lending, and a self-regulatory mechanism for legitimate lenders.

Source: Indian Express June 01, 2022 05:21 UTC