Key Points
The RBI plans to set up a regulatory framework for digital lending apps or loan web aggregators to make taking of loans more consumer centric and transparent..
The RBI governor, as part of the announcement today after the monetary policy review, said that concerns regarding the functioning of loan web aggregators and loan products that harm customers have come to its notice..
Therefore, it proposes to set up a regulatory framework to enhance customer centricity and safety for customers...
As per the statement issued, "The Reserve Bank had accepted, vide its Press Release dated August 10, 2022, the recommendation of the Working Group on Digital Lending (Chairman: Shri Jayant Kumar Dash) to come up with a regulatory framework for web-aggregators of loan products (WALP)..
The information must be sent on the letterhead of the regulated entity (bank) and must contain a Key Fact statement, a summary of loan product, sanction letter, terms and conditions, account statements, privacy policies of the LSPs/DLAs with respect to borrowers data, etc...
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