Loan apps: Hyderabad cops, RBI team devise guidelines to streamline digital lending

HYDERABAD: To counter the crimes committed by instant loan app firms, police officials of Hyderabad, Cyberabad and Rachakonda commissionerates held a meeting with an RBI-appointed working group for devising modalities to regulate the space of digital moneylending in the country. 

Police officials appraised RBI officials on the situation arising out of the operation of money lending apps and their predatory approach towards public lending and recovering loans.During the meeting, it was suggested to devise guidelines to streamline digital lending by authorised NBFCs using various platforms. It was stated that the public must be able to identify genuine and legally authorised moneylending agencies, and their lending process should be transparent and adherent to all legal provisions. 

Cyberabad commissioner VC Sajjanar said banks whose accounts were being used for money transactions by these apps must have a stringent mechanism for KYC and also conduct periodical review of the account users’ activities to alert law enforcement agencies of any suspicious transactions. 

The police also suggested the RBI to streamline certain apps, like those of banks, which notify the RBI of any interface being implemented for the public. NBFCs which are working with these apps should also notify the RBI on the apps which are lending on their behalf. Apps should have all details of the NBFC they are tied up with, and should alert the nodal officer for any grievances.

Banks should have stringent KYC: CP
Cyberabad Commissioner VC Sajjanar said banks whose accounts were being used for transactions by such apps must have a stringent mechanism for KYC and conduct periodical review of the users’ activities to alert law enforcement agencies of suspicious transactions