On January 13, 2021, the Reserve Bank of India (RBI), has formulated a 6-member Working Group (WG) to study all aspects of digital lending activities(including lending through online platforms and mobile apps) in the regulated financial sector as well as by unregulated players so that an appropriate regulatory approach can be put in place.
- The group will be chaired by Jayant Kumar Dash, Executive Director, RBI and will submit its report within three months.
Composition of WG:
Internal Members (RBI): 4 (Including Chairman)
- Ajay Kumar Choudhary, Chief General Manager-in-Charge, Department of Supervision, RBI
- P. Vasudevan, Chief General Manager, Department of Payment and Settlement Systems, RBI
- Manoranjan Mishra, Chief General Manager, Department of Regulation, RBI (Member Secretary)
External members: 2
- Vikram Mehta, Co-founder, Monexo Fintech
- Rahul Sasi, Cyber Security Expert & Founder of CloudSEK
Responsibilities of WG:
–Identify risks posed by unregulated digital lending
–Suggest regulatory changes to promote orderly growth of digital lending;
–Recommend measures for expansion of specific regulatory
–Recommend a robust Fair Practices Code for digital lending players
–Suggest measures for enhanced Consumer Protection
–Recommend measures for robust data governance, data privacy and data security standards for deployment of digital lending services.
Recent Related News:
i.RBI said retail inflation is likely to remain elevated and pegged it at 6.8% for the third quarter of the current fiscal. However, retail inflation is projected to be 5.8% in the fourth quarter of 2020-21.
ii.The Internal Working Group (IWG) of RBI which was formulated on June 12, 2020 to review extant ownership guidelines and corporate structure for Indian private sector banks has recommended an increase in the promoters’ stake in Private Banks to 26% from 15% of the paid-up voting equity share capital of the bank in 15 years.
About Reserve Bank of India (RBI):
Headquarters– Mumbai, Maharashtra
Formation– 1 April 1935
Deputy Governors– 4 (Bibhu Prasad Kanungo, Mahesh Kumar Jain, Michael Debabrata Patra, M. Rajeshwar Rao)