Digital Credit Report – Finance & Banking


India: Digital Loans Report

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Reserve Bank of India (“RBI”) last week released its task force report on digital lending, including lending through online platforms and mobile apps. The aim of the report has been to improve client protection and make the digital lending ecosystem safe and healthy while encouraging innovation.

Main recommendations:

(a) Submit digital lending applications to a verification process by a hub agency to be configured in consultation with stakeholders.

(b) Establishment of a self-regulatory body (“SRO”) covering participants in the digital lending ecosystem.

(c) Separate legislation to prevent illegal digital lending activities.

(d) Development of certain basic technological standards and compliance with these standards as a prerequisite for offering digital lending solutions.

(e) Data collection with the prior and explicit consent of borrowers with verifiable audit trails.

(f) All data should be stored on servers located in India.

(g) The use of unsolicited commercial communications for digital loans will be governed by a code of conduct to be implemented by the proposed SRO.

(h) Maintenance of a “negative list” of loan service providers by the proposed SRO.

(i) Standard Code of Conduct for Collection to be developed by the proposed SRO in consultation with RBI.

RBI has invited stakeholders / the public to submit comments on the report by December 31, 2021.

Reserve Bank of India – Press Releases (

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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