Fintech Association applies to RBI for SRO role in digital lending space

This follows an RBI working group, tasked with studying digital lending by regulated and unregulated financial sector players, recommended creation of SROs to check the activities of such lenders

Fintech Association for Consumer Empowerment, or FACE as it is popularly known, has applied to the Reserve Bank of India (RBI) to take on the role of a self-regulatory organisation (SROs) in the digital lending space. This comes after a working group of the central bank, tasked with studying digital lending in the regulated financial sector as well as by unregulated players, recommended creation of SROs, among other things to keep a check on the activities of digital lenders.

During the pandemic, the number of lending apps went up substantially as financial distress gripped the nation. But many apps were