The Reserve Bank of India is involved in discussions with digital lending and consumer associations as it is on the way to finalising the guidelines on digital lending. The RBI has held a meeting with the Digital Lenders Association on India (DLAI) and the Fintech Association for Consumers Empowerment (FACE) on this matter and there will be more discussion over this in the upcoming week.
“The RBI has reached out to the association regarding their findings and views on various points, including First Loan Default Guarantee (FLDG) and KYC norms, for digital lenders. They have sought responses from the association, and dialogue is ongoing”, according to one of the sources on condition of anonymity.
DLAI represents over 80 members, including digital lenders and Buy Now Pay Later players like ZestMoney, Newgriwth Credit, Capital Float, Lendingkart, Cred and Uni. After the association submits its responses, the RBI will share its perspectives on the key norms.
“The Regulatory is close to finalising the norms, and the final announcement of guidelines can be expected in the next one or two months”, RBI minister Shaktikanta Das said during the last meet.
“We have received a lot of comments on the recommendations by the working group on digital lending. I believe the examination of those comments has been completed”, he added.
Deputy Governor M Rajeshwar Rao said that over 650 comments were received in response to the report from the group working on digital lending. The responses have been framed based on those which will be put up for further discussion.