The Reserve Bank of India (RBI) has proposed that lending service providers (LSPs) should provide information on all available loan offers to borrowers, enabling them to make informed decisions. This move aims to address concerns regarding connected lending and ensure transparency in loan products aggregation. The RBI has sought stakeholder comments on the draft circular on digital lending and transparency in aggregation of loan products from multiple lenders by May 31.
The Reserve Bank is considering the establishment of a Digital India Trust Agency (DIGITA) to combat the rise of illegal lending apps. The agency aims to verify digital lending apps and maintain a register of verified apps to prevent cyber fraud.
