Unauthorised Digital Lending Platforms



Quick Summary
Unauthorised digital lending platforms often promise quick loans but charge excessive interest and hidden fees. They may also use aggressive recovery tactics and misuse borrower data. Always borrow from banks or NBFCs registered with the RBI, or entities regulated by state governments. Verify the credentials of any lending platform and never share KYC documents with unverified apps. Report suspicious platforms to law enforcement or the Sachet portal.

MANU & VINU MAKE A COME BACK

"TALKING ABOUT UNAUTHORISED DIGITAL LENDING PLATFORMS"

Beware of Unauthorised Digital Lending Platforms

Vinu

Hi Manu!

Look at this! I received an offer for a Loan from this Digital Lending Mobile App.

I am going to share my details & get this easy loan!

Manu

Hey Vinu!

Wait! Don't fall prey to this!

It can be an unauthorized app!

Vinu

What?

Manu

Yes!

RBI has already cautioned the general public regarding rising cases of unauthorized Digital Lending Platforms/Mobile Apps through its press release on 23rd December 2020.

Vinu

Really?

Manu

Yes!

It seems several individuals/small businesses are falling prey to this growing number of unauthorized digital lending platforms/Mobile Apps.

They generally give promises of getting loans in a quick and hassle-free manner. 

But later they charge excessive rates of interest and will also levy additional hidden charges.

Vinu

Oh My God!

Manu

They have even adopted unacceptable & high-handed recovery methods and they may also misuse agreement clauses and access data of mobile phones of borrowers.

Vinu

I didn't know it could be so clumsy!

Manu

Yes, Vinu! It can be!

Ensure you are borrowing only from Banks or NBFCs registered with RBI. Only they can undertake Legitimate Public Lending Activities. And also entities regulated by State Governments through statutory provisions like Money Lending Acts can lend.

Double ensure you borrow only from those kinds of institutions.  

Vinu

Got it Manu!

Manu

So don't fall prey to unscrupulous activities and always verify the antecedents of the company/firm offering loans online or through mobile apps.

Vinu

Yes!

Manu

Never share copies of your KYC documents to unidentified persons, unverified/unauthorized Apps.

If you come across any such instances, report such Apps/Bank Account information associated with the Apps to concerned law enforcement agencies or use the Sachet portal (https://sachet.rbi.org.in) to file an online complaint.

Vinu

Ok. 

Manu

Also remember, If Digital lending platforms are used on behalf of Banks / NBFCs, they have a mandatory requirement to disclose the name of the Bank / NBFC upfront to the customers. 

Vinu

Ok

Manu

You can check out the name & addresses of the NBFCs registered with the Reserve Bank at this link:

https://www.rbi.org.in/Scripts/BS_NBFCList.aspx

& if you have any complaints against the entities which are regulated by the RBI, you can do so through this link:

https://cms.rbi.org.in

Vinu

Thanks a lot, Manu!

 
 



About the Author

Chartered Accountant

Practicing Chartered Accountant and Online Faculty for Accounting / Financial Management / Banking Courses. Check out free lectures on Financial Management and Accounting from my web: http://www.carajaclasses.com and https://www.udemy.com/u/caraja/

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