RBI reminder on using digital platforms

Reported by: |Updated: October 14, 2020

The Reserve Bank of India has reminded banks and NBFCs in the light of these institutions increasingly resorting to digital platforms for providing loans that they must note that outsourcing of any activity by them does not diminish their obligations, as the onus of compliance with regulatory instructions rests solely with them. The central bank has told them they must follow the instructions laid down by the regulator before engaging digital lending platforms as their agents to source borrowers and/ or to recover dues. The central bank said any violation in this regard by banks and NBFCs (including NBFCs registered to operate on ‘digital-only’ or on digital and brick-mortar channels of delivery of credit) will be viewed seriously. 

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