The RBI had constituted a working group on digital lending including lending through online platforms and mobile apps in January this year. The panel was set up in the backdrop of business conduct and customer protection concerns arising out of the spurt in digital lending activities. The thrust of the panel report has been on enhancing customer protection and making the digital lending ecosystem safe and sound while encouraging innovation. The working group has also suggested setting up a self-regulatory organisation covering the participants in digital lending. It also said all data must be stored in servers located in India. The report, which has been placed on the RBI website for comments of stakeholders and members of the public, said digital lending apps must be subjected to a verification process by a nodal agency to be set up in consultation with stakeholders.

Link for the report: https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=1189