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RBI wants Fintech operators to follow the rules of the game: Shaktikanta Das

RBI wants Fintech operators to follow the rules of the game: Shaktikanta Das

Shaktikanta Das

Mumbai:

Warning against the mushrooming growth of lending apps and their exorbitant recovery prices, the Reserve Bank says it is not interested in penalizing operators or stifling innovation but wants them follow the rules of the game, governor Shaktikanta Das said on Tuesday.

Speaking at the third edition of the global fintech summit here this evening, he said the central bank’s intention is not to penalize or stifle anyone but to ensure that everyone Everyone obeys the traffic rules.

The statement assumes importance following recent incidents in which some borrowers through these apps have been forced to commit suicide and the rate at which a young pregnant woman was dismembered last week by Mahindra Finance’s rehabilitation worker, which sponsored her father. tractors in Bihar.

Since the past two years, when negative loan application incidents began to emerge, the central bank has made many changes to the rule book, including requiring loan applications to disclose upfront the number of loans. money is disbursed on behalf of NBFC or whose bank.

Governor said, why RBI did not give default guarantee first in recently introduced guidance for loan applications, our aim is not to penalize anyone or stifle any activity any other. All we are saying is obey the traffic rules,” Mr. Das said.

“The Reserve Bank will continue to back it (digital lending) and will welcome it. In fact, we’d go two steps forward to discuss with you if you took just one step further. But having said that, these innovations must also be responsible and must enhance the efficiency and resilience of the financial system while benefiting consumers.

Mr. Das said: “A strong internal product and service assurance framework along with fair and transparent governance will go a long way to protecting the interests of our customers and ensuring our long-term sustainability. fintech organizations themselves”.

(This story has not been edited by NDTV staff and was automatically generated from the syndication feed.)

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