Digital Lending Sector Surges Despite Regulatory Scrutiny

The digital lending industry saw a 49% increase in disbursements, reaching Rs 1.46 lakh crore in FY 2023-24. Loans disbursed grew by 35% to over 10 crore. Regulatory concerns by the Reserve Bank persist, but industry leaders emphasize customer-centricity and compliance.

In the face of extensive regulatory concerns, the digital lending industry experienced a remarkable 49% surge in disbursements, totaling Rs 1.46 lakh crore for the financial year 2023-24, according to an industry body on Tuesday.

The Fintech Association for Consumer Empowerment (FACE) reported a 35% increase in the number of loans disbursed, amounting to over 10 crore borrowings in the last fiscal year.

Despite the Reserve Bank's public concerns and draft guidelines on digital lending practices, industry leaders are driving forward with a focus on customer-centricity, compliance, and sustainable business models, said FACE's chief executive, Sugandh Saxena.

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