Hyderabad: Police-RBI meet held on digital money lending

Saifabad: The senior police officers of Hyderabad, Cyberabad and Rachakonda, dealing with the instant loan app frauds, held a meeting with the RBI appointed working group for devising modalities to regulate the space of digital money lending in the country on Friday. According to an official release, the police officers informed the officials of the RBI about the situation arising out of the operation of unscrupulous money lending apps and their predatory approach towards public in lending and recovering the loans.

It was also highlighted that though the RBI had credible information of these usurious activities in the mid-2020, the same alert was not transformed into action to put surveillance on and curb the fraudulent acts of these apps.

It was also suggested to devise guidelines to streamline the digital lending by authorized Non-Banking Financial Corporations using various platforms. People must be able to identify the genuine and legally authorized money lending agencies, and their lending process should be transparent and adherent to all the legal provisions, said the officers.

They further suggested that the banks whose accounts are being used for money transactions by these fraudulent money lending apps must have a stringent mechanism for Know Your Customer and also have a periodic review of the activities to alert the law enforcement agencies of any suspicious transactions.