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Regulation of Digital Lending - Coggle Diagram
Regulation of Digital Lending
Digital Lending
Through mobile apps, websites, wallets
Process of availing credit online
Significance of Digital Lending
Cost-efficient lending
Exception for red-tapism
Financial inclusion
Preference by MSMEs
Lender of the last resort
Easy onboarding
Alternate source of finance
Issues with Digital Lending
High interest rates
Coercing and harassment for recovery
No business model
RBI recommends
Direct loan disbursement
Data collection with the prior and explicit consent
Developing a Baseline Technology
Standardized code of conduct
Self-Regulation
Way forward
Stringent provisions must be formulated
To ensure consumer trust remains unfettered
Regulation needed against unauthorized players