In a June 11 article, The Federal had highlighted how some of the app-based lending platforms charged exorbitant interest rates, exhibited lack of transparency in the lending process and used harsh recovery measures. They even, in an unauthorised way, accessed the personal data of borrowers to threaten and shame them in their social circles.
The article was also republished in Moneylife, a Mumbai-based online financial magazine.
The Reserve Bank of India (RBI) had taken note of these concerns and issued guidelines on June 24 to govern such lending apps.
Besides discussing the need for such lending platforms and the role of RBI in regulating such players, we speak to banking expert and veteran business journalist Tamal Bandyopadhyay to decipher what the RBI’s new guidelines mean to borrowers and players in the market.
Bandyopadhyay is currently the consulting editor at Business Standard and has been covering the banking industry for decades.