RBI working on digital lending guidelines

Mumbai: The Reserve Bank of India (RBI) will soon come out with the guidelines on digital lending, Deputy Governor M Rajeshwar Rao said on Thursday.

In November last year, the working group on digital lending, including lending through online platforms and mobile apps, had submitted their recommendations. The central bank had sought comments on the recommendations from the public. The last date for which was December 31, 2021. "RBI has received public comments, and we will frame the guidelines (on digital lending) based on those comments.

The work is in progress, and soon it (guidelines) will be launched," Rao told reporters during a call post the announcement of monetary policy. Speaking on the new umbrella entity for retail payments system, RBI Governor Shaktikanta Das said there has been delay in finalising the name of the applicants. On August 18, 2020, the RBI had released the framework for authorisation of pan-India umbrella entity for retail payments and invited applications from desirous entities. The RBI had initially kept the deadline for submission of the application for the umbrella entity till February 26, 2021, but later extended it till March 31, 2021.

Das said the delay in finalising the names is primarily because the officials, who were dealing with the issue, are preoccupied with other works. He, however, said the process is under evaluation, and soon details will be out. In the monetary policy announced today, the RBI kept the repo rate unchanged at 4 per cent and maintained an accommodative policy stance to revive and sustain growth on a durable basis and continue to mitigate the impact of Covid-19 on the economy.