Telangana: RBI warns people against digital money lending agencies

Hyderabad: In the wake of increasing cases of harassment by digital money lending agencies in Telangana, the Reserve Bank of India (RBI) has warned the consumers not to fall in the trap of unauthorised App money lenders which promise instant loans at exorbitant rates of interest.

In an official statement, the India's apex bank said that "Members of public are hereby cautioned not to fall prey to such unscrupulous activities and verify the antecedents of the company/firm offering loans online or through mobile apps."

The RBI cautioned people should never share the copies of their KYC documents with unidentified persons and unverified/unauthorised Apps. People have been requested to inform the law enforcement agencies in case any illegal agency offering instant loans. People can also file an online complaint by using Sachet portal.

The central bank said that all digital lending platforms used on behalf of banks and Non-Banking Financial Companies (NBFCs) should disclose name of the bank or NBFC upfront to the customers. The names of and addresses of the NBFCs registered with the Reserve Bank can be accessed at the RBI website and the portal for filing complaints against the entities regulated by the RBI can be accessed through here, the official statement said.