The Reserve Bank of India (RBI) on Wednesday warned individuals and small businesses not to fall victim to a growing number of unauthorized digital lending platforms and mobile apps with promises of borrowing. quickly and without complications.
These platforms charge excessive interest rates and additional hidden fees, adopt unacceptable and overbearing recovery methods, and misuse agreements to access data on borrowers’ mobile phones.
“Citizens are warned not to fall prey to such unscrupulous activities and to check the background of the company / firm offering loans online or via mobile applications,” the central bank said.
Additionally, consumers should never share copies of Know Your Customer (KYC) documents with unidentified persons, unverified / unauthorized applications and should report such incidents to interested law enforcement agencies.
Legitimate public lending activities can be carried out by banks, RBI registered non-bank finance companies (NBFCs), and other entities that are regulated by state governments under statutory provisions.
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