Page 2 - Digital Lending

Fintech lenders align business model with RBI's digital lending norms

The RBI came out with the guidelines on digital lending in September and gave time until November 30 for players to comply with the 'existing loan' category

RBI's modified digital lending norms to come in effect from Dec 1

The Reserve Bank's modified guidelines on digital lending that seek to protect customers from exorbitant interest rates by certain entities and also check unethical loan recovery practices will come into effect from Thursday. Under the new norms, all loan disbursals and repayments are required to be executed only between the bank accounts of borrower and the regulated entities (like banks and NBFCs) without any pass-through/ pool account of the Lending Service Providers (LSPs). Also, "any fees, charges, etc, payable to LSPs in the credit intermediation process shall be paid directly by RE and not by the borrower", the Reserve Bank said in a press release while conveying the regulatory stance. Executive Chairman of Andromeda Loans, V Swaminathan, said, that since digital loans and online repayments have gained more prominence post-pandemic, the need of the hour is competent systems and processes that would further strengthen data privacy and security of confidential information share

This company promises to let feature phone users make UPI transactions

The Mumbai-based fintech company says by using its services, feature phone users can access their bank accounts, transfer funds, and make bill payments by giving a missed call

CBDT proposes common ITR with focus on crypto assets declaration

New return to also seeks details on foreign equity and debt held by resident Indians; much more exhaustive list for NRIs

RBI governor Shaktikanta Das cautions on backdoor entry in financial space

Although some number of complaints is expected from such a large financial system, the concerning fact is much of the complaints pertain to traditional banking

Subprime borrowers must keep credit utilisation ratio under check

They must also avoid applying for too many loans within a short span

EarlySalary rebrands itself as 'Fibe', aims to expand operations

Fibe has expanded its presence from 18 cities to 150 cities and increased its customer base from 35,000 to 1 lakh new customers per month, the firm said.

Delisting of lending apps will be an ongoing process on Google Play Store

Verification involves manual interventions that can be quite complex

Google asks loan apps to display link to partner bank, NBFC: Report

Google also said that the digital lending apps that fail to comply with the rules, will be deleted from the Google Play Store

PSU banks give digital lending a push as part of EASE reform agenda

Public sector banks are fast adapting to digital means as they have cleared digital lending of Rs 83,091 crore in the financial year ending March 2022. As part of EASE 4.0 reforms, state-owned banks were asked to focus on digital lending, co-lending with non-banking firms, agriculture financing, and technological resilience for 24x7 banking. The Enhanced Access and Service Excellence (EASE) program, driven by Indian Banks' Association (IBA), also stressed on data analytics, automation, and digitization. Launched in 2018, EASE programme sets a common reforms agenda for public-sector banks every year. EASE aims to foster new-age reforms in Public sector banks (PSBs) to improve profitability, asset quality, customer service and digital capabilities. The fourth edition of EASE was focussed on technology-enabled simplified and collaborative banking and Finance Minister Nirmala Sitharaman felicitated top performing banks on various parameters, according to a IBA statement. Bank of Barod

Fast-tracking of status on cryptocurrency assets may be in works

India, like many other countries, is currently not FATF-compliant on crypto assets

The new world of digital lending

The business model of the digital lenders has to change as they have lost their freedom to directly deal with the customers

Lending transparency

Vetting of apps should not affect innovation

Crackdown on illegal loan apps: RBI to make 'whitelist' of legal platforms

MeitY will ensure only authorised apps are hosted on app stores; all ministries to take possible action

Digital lending norms aim to protect customer interest: RBI's Rao

Deputy Governor says guidelines issued on August 10 aim to curb exploitation of regulatory arbitrage

Top headlines: India's first nasal vaccine for Covid-19; new seat belt rule

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Comply with digital lending norms for existing loans by Nov 30: RBI

Guidelines applicable to new and existing customers taking fresh loans

RBI's digital lending guidelines: A tectonic shift in the fintech world

With the central bank having issued new guidelines governing the lending activities of financial technology firms, some may find themselves fighting for survival

Credit risk and reward: P2P offers returns but needs cautious investments

Limit your allocation to 5-10% of your fixed-income portfolio and stick to highly-rated borrowers

Digital lenders seek clarifications from RBI on end-use cases, APR

There are reports that payment aggregators are also looking to knock on the RBI doors as their role has been eliminated