Regulating digital lending

Rules are in the right direction

The Reserve Bank of India (RBI) has published the first set of norms to regulate digital lending. This follows up on the recommendations made by a working group set up to examine this space in January 2021. The central bank also said it would release a second set of norms after engagement with the government and other stakeholders. There may also be a need to set up institutional mechanisms and, perhaps, institute legislative changes. The oversight of this nascent segment is vital. It has seen breakneck growth, anecdotal allegations of a large number of frauds, and the hard-selling of such