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.
The police officers apprised the officials of the RBI on the entire situation arising out of the operation of unscrupulous money lending apps and their predatory approach towards public in lending and recovering the loans.
Further, it was suggested to devise guidelines to streamline the digital lending by authorized NBFCs using various platforms. Public must be able to identify the genuine and legally authorized money lending agencies and their lending process should be transparent adherent to all the legal provisions.
Also, it was suggested that the banks whose accounts are being used for money transactions by these fraudulent money lending apps must have a stringent mechanism for KYC and also periodical review of the activities to alert the law enforcement agencies of any Suspicious Transactions.
