RBI to Establish Public Repository for Digital Lending Apps
The Reserve Bank of India (RBI) is taking steps to combat unauthorized digital lending practices by establishing a public repository for such apps. This announcement was made by RBI Governor Shaktikanta Das during the monetary policy review address on August 8th.
This move comes in response to concerns about unauthorized digital lending apps engaging in unethical practices. Regulated entities will be required to report their digital lending apps to the RBI, allowing for better monitoring and mitigation of issues.
Earlier this year, the RBI proposed the creation of the Digital India Trust Agency (DIGITA). This agency will be responsible for verifying digital lending apps and maintaining a public register of verified apps. Apps without DIGITA's verification will be considered unauthorized and face potential legal consequences. This measure is expected to play a crucial role in combating financial crimes in the digital space.
Monetary Policy Committee Keeps Repo Rate Unchanged
In a separate announcement, the Monetary Policy Committee (MPC) decided to maintain the repo rate at 6.5 percent. This decision was reached by a majority vote of 4:2. The MPC also chose to maintain a 'withdrawal of accommodation' stance, meaning other key rates like the Standing Deposit Facility (SDF), Marginal Standing Facility (MSF), and Bank Rate will remain unchanged.
Governor Das expressed optimism about the Indian economy, projecting a real GDP growth of 7.2 percent for the fiscal year 2024-25. This positive outlook reflects the resilience of domestic economic activities.