RBI releases first set of digital lending norms

The guidelines are part of the central bank’s crackdown on loan apps

The Reserve Bank of India on Wednesday released guidelines surrounding digital lending in India as part of its efforts to regulate the industry. These are based on recommendations made by a six-member working group on digital lending, which was set up in January last year by the central bank and submitted its report in November.

The RBI has classified digital lenders into three groups:

• RBI-approved lending institutions
• Entities authorized to lend as per other statutory provisions but not regulated by the RBI
• Entities lending outside the purview of statutory or regulatory provisions

While the guidelines have addressed each of these …