When you lend money digitally, more things need to be taken care of…
– The RBI’s clear stipulations on digital lending, communicated after a series of engagements last year, have been instrumental in shaping the future of lending
– The objective was to ensure Fair Practices are followed in digital lending
– Keeping in mind the #fakemobileapplications #fakeloanapps racket
– Keeping in mind the #KYC, #onboarding process incl. #creditrisk, these stipulations were the cornerstone in the regulated lending space
– Very specifics were called out such as sharing Key Facts Statements with the Borrower (KFS)
Yesterday, a renowned retail lender in Bharat (India) was asked to stop sanction and disbursal of loans under its two lending products, with immediate effect.
Why so?
– due to the non-adherence of the company to the extant provisions of Digital lending guidelines of the Reserve Bank of India,
– particularly non-issuance of Key Fact Statements to the borrowers
(Source, RBI)
The Compliances…
– Do we take compliance seriously?
– Compliance professionals are your assets and enablers
– There is the cost of non-compliance. Do you get this?
– Is your compliance independent? Do they have the ability to say “No”?
– Or “Chalta hai” (Oh! it happens) attitude still holds the ground.
– Let compliance do its job.
The RBI is amongst the best financial services Central Banks in the world which enables and fosters innovation not at the cost of non-compliance.
Having worked in this #regulatoryaffairs and #regulatorycompliance domain since 2005, I can sense the #purpose for #beingcompliant.
What’s your take?
#chiefcomplianceofficer #chieffinancialofficer #chiefoperatingofficer #chiefinformationofficer #complianceofficer #compliancemanagement #compliance #complianceregulations #rbi #rbipolicy
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I’m Abhishek. 😊
Posts 3-4 times a week on Financial Services, Mindfulness or Research.
Purpose to help #Upskill ✍ & #Enable #You, #Us to the fullest.
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