RBI gets 2,562 plaints against lending apps

The Reserve Bank of India (RBI) has received 2,562 complaints against digital lending apps during the 15-month period ended March 2021.

“Complaints against DLAs – Sachet, a portal established by the Reserve Bank under State Level Coordination Committee (SLCC) mechanism for registering complaints by public, has been receiving significantly increasing number of complaints against digital lending apps,” the RBI’s Working Group on digital lending said in a report.

“Majority of the complaints pertain to lending apps promoted by entities not regulated by the Reserve Bank such as companies other than NBFCs, unincorporated bodies and individuals,” the report said. Another significant chunk of complaints pertains to lending apps partnering with NBFCs especially smaller NBFCs (asset size of less than Rs 1,000 crore).