Digital lending will only be done through legal loan apps suggested by RBI, says FM Sitharaman

New Delhi, 9/9: In a clampdown on illegal digital loan apps that offer loans, especially to vulnerable people at exorbitantly high-interest rates, the government Friday asked the Reserve Bank of India to prepare a list of all legal lending Apps and ensured only such apps would indulge in the lending business in future.

 

The RBI will prepare a “Whitelist” of all legal apps and Meity will ensure only these “Whitelist” apps are hosted on app stores. The decision was taken at a meeting chaired by Finance Minister Nirmala Sitharaman on how illegal loan apps outside the banking channel have been cheating low-income group people by charging an exorbitantly high-interest rate.

 

It was decided that the RBI will monitor the mule/rented accounts that may be used for money laundering and review/cancel dormant shadow banks to avoid their misuse.