RBI Proposes New Measures to Tackle Unauthorized Digital Lending Apps

The Reserve Bank of India has proposed the creation of a public repository for digital lending apps to address issues related to unauthorized players. Additionally, the RBI is introducing 'Delegated Payments' in UPI to allow individuals to make transactions on behalf of others, aiming to deepen digital payment usage.

On Thursday, the Reserve Bank of India (RBI) proposed the establishment of a public repository for digital lending apps in a move aimed at addressing the challenges posed by unauthorized players in the sector.

Additionally, the central bank plans to introduce 'Delegated Payments,' a facility within UPI that will allow individuals to enable others to make transactions on their behalf, RBI Governor Shaktikanta Das announced during a post-monetary policy review.

In a bid to streamline the digital lending ecosystem, the RBI will require regulated entities to report and update their digital lending apps in the proposed repository. This will help consumers identify unauthorized apps. Enhanced transaction limits for tax payments via UPI and initiatives to speed up cheque clearing were also announced.