2021-01-13 14:01:41
The RBI’s working group will consist of both internal and external members.
Digital lending can make access to financial products and services fairer, more efficient and inclusive. From a tertiary supporting role a few years ago, FinTech-led innovation is now at the core of the design, pricing and delivery of financial products and services.
Although penetration of digital transactions in the financial sector is a financially inclusive development, the benefits and certain downside risks of it are often interlinked. It is here that a balanced approach needs to be followed so that the regulatory framework supports innovation while ensuring data security, privacy, consumer protection and confidentiality.
Digital transactions have systemic implications that prompted RBI to form a working group to study all aspects of digital lending activities in the regulated financial sector as well as by unregulated players so that a relevant regulatory approach is in place.
The working group will consist of both internal and external members.
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