HC asks RBI, Govt to ensure compliance by lending apps

The Delhi High Court has directed the Reserve Bank of India and the central government to ensure that digital lending platforms strictly comply with the regulatory framework that was put in place last year to check exorbitant interest rates and harassment of borrowers by recovery agents.

A bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad also asked the government to take immediate steps on the recommendations submitted by the RBI's working group on digital lending.

The court noted that the RBI had accepted most of the recommendations of the working group and so it could not be said that an unregulated mechanism was in place in respect of digital lending platforms.


The government said it would make appropriate decisions in accordance with law within a reasonable time.