RBI panel’s recommendations to promote orderly growth of digital lending, say industry players

The recommendations made by the RBI working group on digital lending, including lending through online platforms and mobile apps, will promote orderly growth of sector, industry players said.
In a comprehensive report, the Working Group constituted by the RBI has made several recommendations, including a separate legislation to prevent illegal digital lending activities, subjecting digital lending apps to a verification process by a nodal agency and establishing a self-regulatory organisation (SRO) covering the participants in the digital lending ecosystem.
Emkay Global Financial Services in a note said the proposals appear to be largely constructive for the digital lending space and are on expected lines.