Mumbai: Reserve Bank of India (RBI) Governor Shaktikanta Das arrives to handle a press convention on financial coverage assertion, on the RBI headquarters, in Mumbai, Friday, Dec. 8, 2023. (PTI Photo/Shashank Parade) (PTI12_08_2023_000096A)
| Photo Credit: SHASHANK PARADE
Along with steps to guard debtors availing loans on-line, the Reserve Bank of India (RBI) on Friday enhanced the UPI payment limits for healthcare and education from ₹1 lakh to ₹5 lakh, and recurring e-payment mandates for bank card and insurance coverage premia funds in addition to mutual fund investments to ₹1 lakh from the present restrict of ₹15,000.
While the RBI had launched a regulatory framework for digital lending in late 2022, Governor Shaktikanta Das stated that a number of considerations had come to the central financial institution’s discover regarding the web-aggregation of mortgage merchandise that had been harming customers’ curiosity. He was referring to corporations that combination mortgage affords from totally different lenders for prospects to select from.
“It has, therefore, been decided to lay down a regulatory framework for web-aggregation of loan products. This is expected to result in enhanced customer centricity and transparency in digital lending,” he stated after the three-day assembly of the RBI’s Monetary Policy Committee (MPC).
The regulator additionally sought to get a greater grip on the rising incidence of banks and non-banking finance firms (NBFCs) partnering with Fintechs by proposing the creation of a Fintech Repository by April 2024. FinTechs could be inspired to supply related data voluntarily to this Repository, he stated.
The form of particulars which may be compiled from fintechs weren’t but clear. “While we wait for further guidelines, providing important information to the repository voluntarily can help in designing appropriate policy approaches,” stated Rahul Jain, CFO at NTT DATA Payment Services.
RBI’s measures for web-aggregators of loans and fintechs might assist “dispel the dark clouds of suspicion hanging over digital lending in recent times”, reckoned Shriram Finance govt vice chairman Umesh Revankar.
