RBI appeals citizens to beware of unauthorized digital lending platforms and mobile apps

RBI appeals citizens to beware of unauthorized digital lending platforms and mobile apps

Raipur: The Reserve Bank of India (RBI) has asked common citizens to be careful regarding the rise in the number of online frauds on unauthorized digital platforms.

RBI has cautioned citizens that many individuals and small businessmen are falling prey to unauthorized digital lending platforms and mobile apps promising quick and hassle-free lending. The reports submitted in this regard have also pointed out exorbitant rates of interest, additional hidden charges to be demanded from borrowers, unacceptable and harsh recovery methods and misuse of agreements to deliver data on the mobile phones of borrowers.

It has also been stated that the Reserve Bank of India is not involved in the process of appointing of Customer Service Centers, Bank Mitras, and Business Correspondents of commercial banks. The Reserve Bank has cautioned the general public to do a thorough check before borrowing from the company or firm providing the loan online or through the mobile app. Consumers should never share copies of KYC documents with unknown persons, unverified or unauthorized apps.

Complaints should be lodged with legal agencies or through the ‘Sachet’ portal https://sachet.rbi.org.in in respect of such apps or bank account. The Reserve Bank has stated that only banks registered with RBI, Non-Banking Financial Companies (NBFCs) and entities regulated by state governments can undertake legitimate public lending activities. The Reserve Bank has made it mandatory for the digital lending platform used by them to make the names of banks and NBFCs public in front of the customers. The names and addresses of NBFCs registered with the Reserve Bank can be accessed from the website https://cms.rbi.org.in and through which complaints can be lodged against entities regulated by the Reserve Bank.