The central bank, the Reserve Bank of India, through the tweet on December 23, made people aware of the unauthorized digital lending platform or mobile apps by providing quick loans. A day after this initiative of the RBI, 5 fintech companies have prepared a code of ethical conduct for digitally lending transactions, so that people can be saved from any kind of loss. According to the Fintech Association for Consumer Empowerment (FACE), through this code, all those methods will have a negative impact on the digital landing eco-system. Face 5 is a non-profit body formed by Pintech companies. This includes Arlisleri, CreditB, Installment, Cash and LoanTap.
FACE has issued a statement saying that issuing the Code of Conduct will increase accountability and transparency in digital lending. Under this code, all digital lenders, including mobile apps, will have to show full costs, pricing and cost of credit in front of customers. That is, there should be no hidden charges. Apart from this, they will be treated fairly, no wrong way will be adopted for collection. Apart from this, it is most important that data privacy will be ensured and disputes will be resolved in an appropriate manner. Regarding collection, all digital lenders, including mobile apps, should follow the date collection policy.
According to the Code of Conduct, digital lenders will be given timely and clear information about outstanding dew due to proper training to their staff and representatives. Face has said in its statement that it will cooperate with the regulatory bodies to strengthen the digital credit lending landscape in the country. In addition, it will monitor and promote high standards for fair practices in this sector.
