Digital lending can make access to financial products and services more efficient and inclusive. From a tertiary supporting role a few years ago, fintech-led innovation is now at the core of the design, pricing and distribution of financial products and services.
Although the entry of digital transactions into the financial sector is a financially inclusive growth, its benefits and some downside risks are often associated. It is here that a balanced approach needs to be followed so that the regulatory framework supports innovation while ensuring data security, privacy, consumer protection and privacy.
There are systemic implications of digital transactions, which prompted the RBI as a regulated group to form a working group to study all aspects of digital lending activities in the regulated financial sector, so as to apply a relevant regulatory approach Ho.
The work group will include both internal and external members.