MUMBAI: The Reserve Bank of India (RBI) has warned people not to fall prey to illegal digital loan platforms and mobile apps that promise quick and uninterrupted loans. The RBI’s directive comes in the wake of widespread complaints of fraud by individuals and small businessmen.
Most digital platforms charge customers exorbitant interest rates and hidden rates. They have unacceptable and arrogant recovery methods. The RBI points out that many of these borrowers are abusing their contracts to illegally acquire data on their borrowers’ mobile phones.
People should not fall prey to such immoral activities. You should check the history of the company offering loans online or through the app. Copies of KYC documents to identify the customer should not be shared with anonymous persons or apps. Such incidents should be reported to the authorities. The RBI has explained that transactions should be done only with legal entities.