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By Parikshit Luthra Feb 7, 2023 2:59:27 PM IST (Published)
The RBI, as part of a master circular, has issued digital lending guidelines which list measures such as due diligence of loan service providers, direct disbursal of loan from the lender's bank account to the borrower's without any pass-through or third-party account, to avoid layering, the ministry said.
Google Play and Apple App Store have received a list of digital lending apps that are allowed to remain on their platforms. The Reserve Bank of India shared a list of apps used by its regulated entities with the Ministry of Electronics and Information Technology (MeitY), which in turn, shared the same with intermediaries offering app stores, the Finance Ministry told the Parliament on Tuesday. The companies have been asked to ensure that only the apps figuring in the list are hosted on app stores.
On Monday, sources told CNBC-TV18 that a number of prominent fintech firms were facing a potential ban on their operations after MeitY included them in a list of digital lenders whose websites and applications were to be blocked in India.
PayU’s LazyPay, Vertex Growth and Brunei Investment-backed Kissht are among the lenders who are impacted due to this latest directive from the government. MeitY recently blocked 138 betting apps, and 94 loan apps with links to China and alleged involvement in money laundering.