RBI tightens norms related to digital lending

MUMBAI: In a bid to rein in excesses in the digital lending ecosystem, the Reserve Bank of India (RBI) rolled out a new set of master directions focused heavily on consumer protection. Regulated entities(REs) must now furnish to borrowers digitally signed loan documents and a key fact statement, while also offering a cooling-off period during which loans can be exited without penalty-barring a disclosed processing fee.Digital lending apps are barred from accessing phone data without consent, and alluser data must be stored within India.