Digital Lending-Working Group Report for public Comments

RBI has released the copy of the Working group report on Digital Lending for public comments.

The report is available here

Comments may be sent through email before December 31, 2021 to : 

The committee was chaired by Mr Jayant Kumar Dash and comprised of M/s Ajay Kumar Choudhary, P Vasudevan, Vikram Mehta, Rahul Sasi and Manoranjan Mishra as members.

The gist of the recommendations are as follows:

The following are a gist of the key recommendations:

  1. Subjecting the Digital Lending Apps to a verification process by a nodal agency to be setup in consultation with stakeholders.
  2. Setting up of a Self-Regulatory Organisation (SRO) covering the participants in the digital lending ecosystem.
  3. A separate legislation to prevent illegal digital lending activities.
  4. Development of certain baseline technology standards and compliance with those standards as a pre-condition for offering digital lending solutions.
  5. Disbursement of loans directly into the bank accounts of borrowers; disbursement and servicing of loans only through bank accounts of the digital lenders.
  6. Data collection with prior and explicit consent of borrowers with verifiable audit trails.
  7. All data to be stored in servers located in India.
  8. Algorithmic features used in digital lending to be documented to ensure necessary transparency.
  9. Each digital lender to provide a key fact statement in a standardised format including the Annual Percentage Rate.
  10. Use of unsolicited commercial communications for digital loans to be governed by a Code of Conduct to be put in place by the proposed SRO.
  11. Maintenance of a ‘negative list’ of Lending Service Providers by the proposed SRO.
  12. Standardised code of conduct for recovery to be framed by the proposed SRO in consultation with RBI.


About Vijayashankar Na

Naavi is a veteran Cyber Law specialist in India and is presently working from Bangalore as an Information Assurance Consultant. Pioneered concepts such as ITA 2008 compliance, Naavi is also the founder of Cyber Law College, a virtual Cyber Law Education institution. He now has been focusing on the projects such as Secure Digital India and Cyber Insurance
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