RBI issues digital lending norms, reserves space for regulated entities

Only entities regulated by RBI or other bodies permitted by law can carry out digital lending, says RBI

In its effort to mitigate the concerns arising from credit delivery through digital lending methods, the Reserve Bank of India (RBI) on Wednesday came out with guidelines aimed at firming up the regulatory framework for such activities. The banking regulator has categorically specified that the lending business can only be carried out by entities regulated by it or those permitted under the law.

The central bank has divided the universe of digital lenders into three groups — entities regulated by the RBI and permitted to carry out lending business; entities authorised to carry out lending according to other statutory/ regulatory