The Reserve Bank of India is angry about the modalities of the companies collecting loans. RBI Governor Shaktikanta Das has expressed displeasure over the methods of extortionate loan recovery. He said that the use of coercive methods including making calls, talking in bad language by the recovery agents is not acceptable and the central bank is giving serious attention to such incidents so that necessary action is taken to check them. Can go Addressing an event, the Governor said that most of such incidents are related to organizations which are not registered. However, it has also been learned that the institutions to which we have given approval also do so. The RBI governor said, “Such a large-scale use of new methods in debt estimation can lead to concerns such as excessive debt, inadequate credit assessment.” He said that the RBI will soon come out with a consultation paper on providing digital loans.
Questions about competition and data privacy
The governor also explained the difficulties arising out of big technology companies entering the financial business. He said this could create concerns at the borrower’s level such as excessive borrowing and not being able to repay it. With big tech companies like Google, Amazon and Facebook (meta) entering the financial business, questions will arise about competition and data privacy.
Risks associated with companies
He said that there are risks associated with these companies, which have to be properly assessed and dealt with. Such companies, he said, include e-commerce companies, search engines and Internet media platforms, which began to offer financial services “on a large scale” either on their own or through partnerships, and thus new approaches to debt assessment. Methods are being used.
Posted By: Navodit Saktawat