RBI to crack whip on recovery agents, calls for restricting messaging apps

Digital lending apps extend small amounts at exorbitant rates. Payment delays invite messages to customer or close family members, often with sensitive information such as Aadhaar and PAN Card scans

Topics
digital lending | Debt Recovery Tribunal

Anup Roy & Subrata Panda  |  Mumbai 

The working group on digital lending is expected to recommend measures to rein in excesses by recovery agents, particularly when it comes to the efforts in damaging the reputation of the customer for late payments of small amounts.

Sources familiar with the thinking of the Reserve Bank of India (RBI) say the central bank is strongly of the opinion that immediate measures be taken to prevent recovery agents from using private messaging apps to send texts to those in the contact list of late payers or defaulters. Digital lending apps extend only a few hundreds or thousands at very high ...

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First Published: Tue, January 19 2021. 18:25 IST
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