StartupTalky

Tag: Reserve Bank of India

  • RBI Increases the Cap on UPI Lite Wallets to INR 5,000

    The Reserve Bank of India (RBI) raised the UPI Lite wallet limit from INR 2,000 to INR 5,000 in an effort to further boost the nation’s adoption of digital payments. On December 4, the central bank also declared that the offline transaction limit for the UPI Lite service would be raised from the existing INR 500 to INR 1,000 per transaction. The new restrictions will take effect right away.

    RBI Amends its Framework

    As a result of the RBI’s amendment to its framework for facilitating minor value digital payments in offline mode, the new changes were implemented. The framework stipulates, among other things, that a payment instrument may not exceed INR 2,000 in total at any given moment and that the maximum amount for offline digital payment transactions is INR 500. According to the notification, the offline framework has been modified, and the increased limitations for UPI Lite are INR 1,000 per transaction, with INR 5,000 being the maximum limit at any given time.

    Launched in 2022, UPI Lite allows customers to conduct small-value transactions online without a PIN or internet connection. The solution allows offline debit for payments but only allows credits to be made once the user is online, avoiding the need for a bank’s basic banking systems in real-time. This comes a few months after the central bank announced plans to raise the UPI Lite transaction ceiling to INR 1,000 following the October meeting of its Monetary Policy Committee.

    Next to Increase Per Transaction Limit of UPI123 Pay

    Additionally, the RBI had stated that the existing INR 5,000 per transaction restriction for UPI123 Pay would be raised to INR 10,000. In an effort to increase the use of UPI payments throughout the nation, the RBI has been aggressively testing out new UPI products at the same time. RBI governor Shaktikanta Das introduced UPI Circle in August 2024, enabling users to connect with reliable secondary users on the UPI app for partial or complete payment delegation.

    UPI Tap & Pay and Hello UPI!

    UPI Tap & Pay, which allows users to make payments by tapping their phone on a contactless reader, and Hello UPI, a conversational UPI payment solution, were both introduced by the National Payments Corporation of India (NPCI) last year. Digital payments are still growing throughout the nation because of rising internet and smartphone usage.

    In November 2024, UPI recorded INR 1,548 Cr transactions, a 38% increase over the INR 1,100 Cr transactions recorded during the same period last year. In the meantime, the value of transactions on the payments infrastructure increased from INR 17.4 Lakh Cr in November 2023 to INR 21.55 Lakh Cr last month, a 24% increase.

    Paytm Launches UPI Lite Auto Top-Up for Payments Under INR 500
    Paytm launches UPI Lite Auto Top-Up, designed for hassle-free everyday payments under INR 500, enhancing convenience for small transactions.
    StartupTalkyNitin Konde

  • The Government Announces Updated Forex Regulations for Startups

    The Reserve Bank of India (RBI) has announced the updated Foreign Exchange Management Regulations, 2024, to make it easier for startups to conduct business. The November 19 modifications open the door for the updated FX rules to incorporate the Department for Promotion of Industry and Internal Trade’s (DPIIT) 2019 decision on the amended definition of startups.

    With regard to opening foreign currency bank accounts for DPIIT-recognised startups, the new regulations, known as the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Fourth Amendment) Regulations, 2024, are intended to streamline the procedure and eliminate any confusion among authorised dealer banks.

    Reason For the Amendment

    In the past, a company could only be classified as a startup if it had a turnover of less than INR 25 Cr and for a maximum of five years. DPIIT’s 2019 notification, however, raised the turnover cap to INR 100 Cr under the liberalised system and loosened the threshold to ten years from the date of formation. More DPIIT-recognized startups will be able to create and maintain interest-bearing accounts in Indian Rupees or foreign currency as a result of these changes, which will also be reflected in the updated forex regulations.

    The DPIIT has more than 1.5 lakh registered startups. Startups that register with the agency are eligible for a number of benefits, such as tax deductions, reduced compliance requirements, and temporary immunity from labour law inspections. For ease of doing business, it is important to remember that earlier this year, the Budget 2024–25 recommended harmonising the concept of a “startup” across multiple laws.

    Foreign Exchange Management Act

    In order to facilitate foreign exchange payments and trade with other countries, the Indian government replaced the Foreign Exchange Regulation Act (FERA) of 1973 with the Foreign Exchange Management Act (FEMA) in 1999. For a variety of reasons, such as receiving and paying foreign currency, purchasing and transferring real estate outside of India, opening and maintaining foreign currency accounts, and investing in overseas businesses, FEMA compliance is required for Indian startups that deal in foreign exchange.

    According to Mayank Arora, Regulatory Director at Nangia Andersen India, the recent change to the FEM (Foreign Currency Accounts by a Person Resident in India) Regulations is consistent with the DPIIT’s most recent notification, which aims to standardise the definition of a startup.

    The RBI’s Foreign Exchange Management (Deposit) (Fourth Amendment) Regulations, 2024, added a new clause that permits authorised dealers in India to open and manage interest-bearing accounts in foreign currencies or Indian Rupees for non-resident individuals.

    NPCI Approves Phi Commerce’s UPI Switch for Seamless Payments
    The NPCI has approved Phi Commerce’s UPI switch, paving the way for enhanced payment solutions and seamless transaction processing.
    StartupTalkyNitin Konde

  • The NPCI Approves Phi Commerce’s UPI Switch

    The National Payment Corporation of India (NPCI) has certified Phi Commerce, a fintech digital payment company, to provide UPI Switch to its business clients, mainly to maintain high transaction volumes. 

    Phi Commerce will be able to onboard enterprise customers more quickly thanks to UPI Switch, which will cut down on the turnaround time that comes with the current bank-driven approach for onboarding new clients. This will help their business clients to launch goods and services more quickly than they could in the past by allowing them to provide a wide variety of payment alternatives to their clients virtually instantly. 

    It will Help NPCI to Achieve its Goal

    UPI Switch is a vital tool that will assist NPCI in reaching its ambitious goal of one billion transactions per day within the next three to five years, according to Rajesh Londhe, co-founder and head of payments at Phi Commerce. By distributing traffic over several servers, UPI switches shorten processing times and avoid system overloads.

    By distributing the load among several servers, UPI Switch assists during periods of high demand when individuals scramble to make payments. It’s similar to adding more checkout lanes to a grocery store during peak hours to speed up traffic. Londhe continued, “In this manner, users experience speedy, effective transactions without delay.”

    Offering Enterprises Omnichannel Payment Solutions

    Businesses may use Phi Commerce’s omnichannel payment solutions to make payments easy and flexible from any consumer touchpoint, including browsers, smartphones, in-store, and remote. Phi Commerce, a Reserve Bank of India-licensed payment aggregator payment gateway (PAPG), provides a single omnichannel digital payment platform that meets the needs of businesses globally in terms of both B2B and B2C payments.

    The UPI Switch feature facilitates simple integration and provides risk management tools, on-premises or cloud-based architecture, and round-the-clock maintenance and support for dependability and uptime.

    Unified Payment Stack Solution

    UPI Switch is a unified payment stack solution that supports all other services that the NPCI has rolled out so far, including credit card linkages, recurring requirements, UPI Auto Pay, and quick refunds. As processing time decreases significantly, this add-on solution will also assist corporate clients in lowering their operating expenses while enhancing overall productivity and customer satisfaction. 

     In addition to controlling traffic, this function uses real-time fraud monitoring algorithms to keep an eye out for any odd or suspicious transactions. 

    With reaction times of less than a second, UPI switches manage billions of transactions. Additionally, it facilitates API-based interfaces, which allow for communication with a range of fintech platforms and financial institutions.

    What is NCPI?

    In order to establish a strong Payment & Settlement Infrastructure in India, the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) launched the National Payments Corporation of India (NPCI), an umbrella organisation for running retail payments and settlement systems in India, in accordance with the terms of the Payment and Settlement Systems Act, 2007.

    Given the usefulness of its goals, NPCI was established as a “Not for Profit” company in accordance with Section 25 of the Companies Act 1956 (now Section 8 of the Companies Act 2013). Its goal is to supply infrastructure for both electronic and physical payment and settlement systems for the whole Indian banking system. In order to increase operational efficiency and expand the reach of payment systems, the company is committed to implementing technological advancements in retail payment systems.

    ICICI Bank Limited, HDFC Bank Limited, Citibank N. A., HSBC, State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, and Bank of India are the ten primary promoter banks. In order to integrate additional banks from all industries, the shareholding was expanded to 56 member institutions in 2016. New RBI-regulated organisations, including payment banks, small finance banks, and payment service operators, were introduced in 2020. In accordance with the relevant requirements of the Companies Act of 2013, the shares were distributed in accordance with the issuance of equity shares on a private placement basis.

    RBI to Act Against Banks Failing KYC and Customer Care Standards
    The RBI plans to take action against banks that fail to meet KYC and customer care standards, ensuring better compliance and customer service.
    StartupTalkyNitin Konde

  • Banks Have Prepared a List of 3000 Businesses That Are Perpetrators of Fraud

    According to sources familiar with the matter, banks have compiled a comprehensive list of over 3,000 companies implicated in fraud, which they intend to share and update in real time in response to an upsurge in financial scams. Legal professionals, construction workers, and gold loan evaluators are among those on the list of those who allegedly conspired to get loans using deceitful ways.

    A senior bank executive informed the media that the matter was discussed at a meeting last month with the Advisory Board for Banking and Financial Frauds (ABFF). The decision was made to require lenders to check this list before doing business with such entities, and it will be updated in real time.

    Adhering to RBI Guidelines

    As banks keep sticking to the most recent fraud classification criteria that was announced by the Reserve Bank of India (RBI) on July 15, the list may contain additional items. Furthermore, at a discussion with the ABBFF, it was brought to the attention of the group that the operational staff does not always monitor the ‘caution list,’ which may make it possible for fraudulent entities to potentially re-enter the financial system.

    One of the bank officials mentioned that to guarantee complete compliance, the banks will be issuing internal directions.

    Even though banks typically take separate actions against fraudulent companies, these entities frequently find ways to interact with other regulated entities (REs). It is easier for lenders to verify and avoid dealing with organizations that have been reported for banking fraud thanks to the consolidated list.

    Instruction by the Central Vigilance Commission

    All public sector banks (PSBs), public sector insurance firms, and public sector financial institutions have been given instructions by the Central Vigilance Commission (CVC) to send any cases of fraud that involve more than INR 3 crore to the All India Bank for Financial Facilitation (ABFF) for advice.

    The board has also been given the authority to conduct periodic fraud analysis in the financial system and to provide suggestions, if any, to the Reserve Bank of India and the Central Values Commission (CVC) for the formation of policy.

    The list may be revised because banks will soon be finishing their internal exercise, according to one of the executives associated with the bank. There is a possibility that the new list will include other businesses such as valuers, chartered accountants, and business correspondents.

    It has been found that fraudulent entities frequently manage to engage with other regulated entities (REs), even though banks normally take individual action against fraudulent organizations. The consolidated list gives lenders the ability to verify organizations that have been identified for financial fraud and to avoid associating with those organizations.

    How to Find Out if a Business or Company Is Fraud or Not?
    If you think a company or a business is not legitimate and is fraud. Here are a few ways to find out if the business is a fraud or not.
    StartupTalkyShalini Rath

  • Quick Access to Loans for Borrowers in Rural Areas: RBI to Unveil Unified Lending Interface

    On 26 August 2024, Shaktikanta Das, governor of the Reserve Bank of India (RBI), stated that the bank is considering a nationwide launch of a technological platform dubbed the Unified Lending Interface (ULI) to expedite the distribution of loans, particularly to smaller borrowers and those residing in rural areas.

    At a worldwide conference in Bengaluru on “Digital Public Infrastructure and Emerging Technologies,” Das predicted that ULI will revolutionise retail financing in the same way that UPI did.

    “We expect ULI to transform the lending landscape,” the governor stated, comparing it to how the Unified Payments Interface changed the payments sector.

    For the purpose of facilitating frictionless financing, the central bank created the Public Tech Platform one year ago today. The original intent was to simplify the process of obtaining a loan or credit by giving lenders digital information in a matter of minutes.

    “VoloFin welcomes the Reserve Bank of India’s initiative to introduce a unified lending interface, a pivotal step towards enhancing financial inclusion across rural India. This platform will empower borrowers in remote areas by providing quick and seamless access to credit, bridging the gap between financial institutions and the underserved segments of our society. The availability of instant loans will not only boost economic activity but also enable entrepreneurs in these regions to scale their businesses, create jobs, and contribute to the overall development of their communities. As a company dedicated to simplifying finance and extending support to MSMEs, we believe that this move will revolutionize the way rural India interacts with financial services,” said Roshan Shah, Co-Founder & CEO, VoloFin.

    Echoing similar sentiments, Pramod Kathuria, Founder and CEO of Easiloan stated, “The ULI will simplify the loan application process by integrating multiple financial institutions, including banks, non-banking financial companies (NBFCs), and digital lenders, onto a single platform. This streamlined process ensures that loan applications are processed more quickly and efficiently. Through real-time data sharing and advanced algorithms, ULI enables instant verification of borrower credentials, such as KYC (Know Your Customer) details, credit history, and income verification. This reduces the time taken for loan approval from days to mere minutes, accelerating the disbursement process.”

    The System Aims to Make Entire Lending Process Hassle Free

    Banks, account aggregators, digital identification authorities, banks, credit information businesses, and state and federal governments were among the several sources from which RBI retrieved the data needed for credit evaluation. A delay in the smooth and timely distribution of loans was caused by the data being available in several systems.

    Because of this, the entire digital platform was built with an open architecture and open APIs so that all the participants in the financial sector can connect with each other in a ‘plug and play’ fashion.

    The tech platform is the result of several pilot initiatives that started in 2022. These experiments included digital dairy loans and end-to-end digitisation of Kisan Credit Card (KCC) loans. As a result of these initiatives, the loan processing time was significantly reduced and the desired efficiency was achieved. Additional digital loans were added to the platform last year.

    Digitization Revolutionising India’s Lending Sector

    According to Das, the digital Public Tech Platform is an aspect of the central bank’s efforts to digitise banking services. “Data privacy is fully protected, and the new platform is also based on consent of potential borrowers,” he assured.

    Das mentioned that there is a new suggested trinity that would replace the old one, which consisted of Jan Dhan Accounts, Aadhaar, and mobile phones or JAM.

    He proclaimed that the Central Bank Digital Currency (CBDC), which will be introduced gradually and consists of the new trinity of JAM, UPI, and ULI, is a groundbreaking development in India’s digital public infrastructure. “This initiative streamlines the integration of multiple technical systems, which means borrowers can enjoy the benefits of easier credit delivery and faster processing times without having to provide a mountain of paperwork,” he continued.

    Lenders, customers, and data service providers are all winners with this platform. Through consent architecture, customers can acquire streamlined, personalised credit without submitting paper forms or physically visiting banks. The network effect, standardisation, cost efficiency, innovation in the loan process, scalability, and increased reach are all to the advantage of lenders and data service providers.

    How RBI changed the demographics of P2P Lending?
    While the RBI first published comprehensive rules for the market in 2017, 2019 saw the introduction of certain updates to those rules.
    StartupTalkyNitin Konde

  • A Subsidiary of Jio Financial Services Is Established to Distribute Financial Products

    In response to the announcement that it has formed a subsidiary to market financial goods, Jio Financial Services Ltd.’s stock increased by more than 1.6% in Friday’s early trades, August 16.

    In a stock filing on August 15, JFSL shared the news that the company has formed a totally owned subsidiary called Jio Finance Platform and Service Limited on August 14, 2024.

    This new enterprise, which will have its headquarters in Mumbai, will provide a comprehensive suite of banking and related services.

    Jio Financial Services is going to put up INR 1 lakh to buy 10,000 equity shares, having a face value of INR 10.

    The new subsidiary’s certificate of incorporation was received on August 15 from the Ministry of Corporate Affairs.

    Shares of Jio Financial Services started the day on the up at INR 324 on the NSE and continued to rise, reaching an intraday high of INR 325.5.

    Company’s First AGM

    The first annual general meeting (AGM) of z will be conducted on Friday, August 30, as announced on August 5, by the firm.

    For the sake of convenience and accessibility, the conference will be held by Video Conferencing (“VC”) and other Audio-Visual Means (“OAVM”).

    Compared to the same period last year, when it was INR 332 crore, Jio Financial Services’ consolidated net profit for Q1FY25 was INR 313 crore, a year-on-year fall of 5.7%.

    In the reviewed period, total revenue rose to INR 418 crore from INR 414 crore in Q1FY24, a slight rise of 0.97%.

    Decline on Total Interest Earned

    The overall interest earned for the quarter fell at INR 162 crore, a 20% year-over-year and 42% sequential fall.

    The net benefit from increases in fair value increased substantially, climbing by 25% annually and 101% quarterly, to INR 218 crore.

    About JFSL

    In July of 1999, JFSL was initially established as Reliance Strategic Investments Private Limited, which was originally constituted under the Companies Act of 1956. In July of 2023, Jio Financial Services Limited was officially established as a company.

    The Reserve Bank of India (RBI) has registered JFSL as an NBFC-ND-SI. The company is a holding company, and it will run its financial services business through its consumer-facing subsidiaries, which are Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), and Jio Payment Solutions Limited (JPSL), as well as through a joint venture that is called Jio Payments Bank Limited (JPBL).

    Reliance Jio Success Story – Revolutionizing the Telecom Industry
    Jio was the first network to provide 4G LTE services and VoLTE services. Know more about Reliance Jio’s company profile, Jio Business model, revenue, tagline.
    StartupTalkyRishabh Rathi

  • The Implementation of a 30% UPI Cap Is Highly Doubtful

    With just over four months to go until the deadline, industry insiders have expressed doubts about the proposed 30% market share cap in the Unified Payments Interface (UPI) category, according to multiple media sources. Multiple newcomers to UPI have been informed, informally, that the limit is not going to be implemented. As a result, they have begun to reassess their growth and investment strategies, according to those briefed on the situation.

    According to earlier media reports, new players in the UPI industry are holding off on making large expenditures until they have a better understanding of the market share rule. UPI payments are dominated by PhonePe and Google Pay.

    However, the National Payments Corporation of India (NPCI), which oversees the UPI railway, has not received any official word from the government regarding its stance.

    Customers’ Choice

    Reportedly, the regulator is of the opinion that new entrants have not been able to reduce the dominance of the top two UPI services, therefore it is left with few choices regarding the implementation of the December 31st deadline.

    In response to enquiries, neither NPCI nor the ministry of electronics and IT provided any information. Implementing this law (market cap) will require significant planning, according to several experts. It cannot be done in a day due to the disruptive nature of the process.

    The Growth Trajectory

    Both the government and NPCI are deeply committed to the expansion of UPI, which reached 14 billion monthly transactions in May. If people keep using the same two or three platforms, what options do we have? So many new entrants are able to set up shop, but they haven’t made a dent just yet.

    In July, out of the 14.4 billion UPI transactions, more than 85% were processed through Walmart’s PhonePe and Google Pay. Google Wallet had 5.3 billion transactions, whereas PhonePe had 6.9 billion. With 1.1 billion UPI transactions, Paytm (One 97 Communications) came in third, and Cred (142 million payments) came in fourth.

    The Reserve Bank of India (RBI) placed restrictions on Paytm Payments Bank in February, making arguments about the market share ceiling more prominent. Paytm is the third largest UPI operator. On February 5, a prominent media outlet said that Paytm’s problems will cause users and businesses to switch to the two most popular applications.

    Why the Cap Cannot Be Implemented?

    To prevent the UPI ecosystem from becoming overly dependent on only one or two platforms, NPCI first proposed a market share cap. In December 2022, NPCI delayed implementation for two years following multiple rounds of negotiations and requests from key corporations operating such apps.

    Some industry executives and specialists in the field have voiced concerns that imposing a market share cap might cause systemic disruption and be technically challenging to achieve.

    Conversely, NPCI has been facilitating the development of UPI solutions by numerous consumer internet platforms with huge user bases, enabling them to become third-party application providers.

    Flipkart, the e-commerce platform that was once PhonePe’s parent company, Groww, Slice, and the Tata Neu superapp are all part of this group. Another company that has introduced its UPI offering through the plug-in channel is Swiggy, a food and grocery delivery firm that has partnered with banks. Similarly, Ola Consumer is in the process of planning a same system.

    UPI – Unified Payments Interface | Features and Benefits
    UPI (Unified Payments Interface) is an instant real-time payment system. Know about advantages & disadvantages of UPI, services, charges, and more.
    StartupTalkyPiyush Mishra

  • NCLT Gives Clearance to Merger Between Slice and North East Small Finance Bank

    Slice, a unicorn in the financial technology industry, has been granted permission by the National Company Law Tribunal (NCLT) to merge with North East Small Finance Bank (NESFB).

    Both businesses made the announcement that they would be merging in October of 2023. In March of the previous year, Slice paid around $3.42 million to purchase a five percent ownership in a bank with its headquarters in Guwahati.

    How Merger Will Help Both the Entities?

    In a news release, Slice noted that the merger will make it possible for the merged business to make use of cutting-edge technology and profound community awareness, which will ultimately lead to increased financial inclusion across the country.

    Customers may anticipate an increased selection of products, improved omnichannel offers, and a banking experience that is more streamlined.

    The scheme of arrangement and amalgamation that involves Garagepreneurs Internet Private Limited, Quadrillion Finance Private Limited, Intergalactory Foundry Private Limited, RGVN (North East) Microfinance Limited, and North East Small Finance Bank Limited has been approved by the National Company Law Tribunal (NCLT).

    The Competition Commission of India (CCI) and the Registrar of Companies (RoC) have both given their thumbs up to Slice and NESFB respective applications.

    In addition, the Reserve Bank of India (RBI) and the Income Tax Department also issued certificates stating that they did not have any objections to the transaction.

    Slice’s Financial Report Card

    Shortly after the conclusion of Slice’s debt round of thirty million dollars, this new development has taken place. The most recent valuation of Slice was above $1.5 billion, which occurred at the Series C round in November 2021. To date, Slice has raised a total of $340 million.

    According to the data intelligence platform TheKredible, Rajan Bajaj, who held the position of CEO and co-founder of the company, owned 8.21% of the ownership.

    While Slice’s losses increased by 59.8% to a total of INR 406 crore, the company’s revenue increased by a factor of three, reaching INR 843 crore in the fiscal year 2023.

    The Bengaluru-based company was able to scale during the fiscal year 23, despite the disruption it experienced as a result of the Reserve Bank of India’s change in rules for card issuers. It has not yet submitted its annual financial reports for the fiscal year 2024.

    About Slice Card

    Slice is a digital lending platform that, in partnership with non-bank financial companies (NBFCs), provides a credit card. The Slice card is intended for individuals who are new to the concept of credit, as well as students and young professionals who have their finances limited.

    There is no requirement for a credit score, and the eligibility requirements are more lenient. There is also no annual charge or membership cost associated with the card.

    Fintech Takeaways from Slice-North East Small Finance Bank Merger
    In this article, we explore how fintech companies can lay the foundation and prepare for a probable merger-like scenario with a bank in the future.
    StartupTalkyPrithvi Durai

  • Digital Lending App Repository Proposed by RBI

    To combat the problem of unlicensed actors in the digital lending industry, the Reserve Bank of India (RBI) suggested the establishment of a public registry for digital lending applications (DLAs) during its third committee meeting every six months for FY24-25. More and more people are worried about predatory lending, and this program is an attempt to address those worries and strengthen consumer protection.

    Shaktikanta Das, governor of the Reserve Bank of India, emphasized that the proposed repository would provide a complete directory of digital lending applications run by firms approved by the RBI. These regulated businesses must submit and update their repository information regarding their digital lending applications regularly.

    According to Das, the repository would be regularly updated with new information submitted by organizations that are regulated. It involves replacing non-compliant or illegally operating digital lending apps with new ones that adhere to regulatory norms.

    Loan transactions must take place directly between borrowers and lenders, with terms disclosed clearly and transparently; this program is a part of the RBI’s larger digital lending standards. Strong procedures for resolving complaints and safeguarding borrower information are also highlighted in the guidelines.

    Simplifying the World of Online Loans

    A significant change in the lending environment has occurred in India, as customers have shifted from visiting bank branches to utilizing mobile phones to borrow money. This is due to the ongoing expansion of internet penetration in the country. Many Indians experienced financial difficulties as a result of banks cutting back on lending after the COVID-19 outbreak.

    Online loan apps have grown in popularity to address this need. These online loan marketplaces have mushroomed, providing loans fast (but frequently at exorbitant interest rates) and using aggressive collection tactics. The rules set out by the RBI are ignored by a large number of these apps.

    Addressing the Challenges Posed by Unauthorized Lending App

    In subsequent years, a multitude of reports were submitted against these lending applications, emphasizing a variety of consumer concerns. Aggressive practices, including high interest rates and aggressive debt collection measures, were reported by many users. Harassment by collection agents, inaccurate statements, and illegal deductions were among the complaints.

    In 2022, the Reserve Bank of India (RBI) and the federal government asked Google to impose tougher controls to stop the spread of unlicensed lending apps, in reaction to rising worries about these platforms. Google consequently eliminated 2,500 fake loan applications from the Play Store in December 2023.

    Meetings of the Financial Stability and Development Council, which were held in February of this year, also dealt with the matter. Nirmala Sitharaman, the minister of finance, and other high-ranking government officials met to address the problems caused by unlicensed lending applications.

    Top 9 Digital Lending Companies in India
    If you are planning to get a personal or business loan for your small business or startup, here are the top lending companies that provide loans.
    StartupTalkyPratyusha Srivastava