economics medium Fill in the Blank

To protect consumers from predatory lending practices and illegal loan apps, the RBI issued strict guidelines in 2022 regulating _-to-_ (P2P) lending platforms and digital lending apps, mandating that all loan disbursals must flow directly into the borrower's bank account.

street vendors
Peer (or P2P)
Governing Council
Lewis

Answer: Peer (or P2P)

The proliferation of unregulated digital lending apps led to severe issues like exorbitant hidden interest rates, data theft, and coercive recovery tactics. The RBI's guidelines clamped down on this by ensuring that Lending Service Providers (LSPs) cannot hold or pool customer funds, and that only regulated entities (Banks/NBFCs) can actually disburse the credit directly to the end consumer.

Topic Banking - Digital Lending

Exam Relevance Banking, UPSC Prelims, SSC

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To protect consumers from predatory lending practices and illegal loan apps, the RBI issued strict guidelines in 2022 regulating _-to-_ (P2P) lending platforms and digital lending apps, mandating that all loan disbursals must flow directly into the borrower's bank account.

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Create a custom practice set

Weekly challenge coming soon

To protect consumers from predatory lending practices and illegal loan apps, the RBI issued strict guidelines in 2022 regulating ___-to-___ (P2P) lending platforms and digital lending apps, mandating that all loan disbursals must flow directly into the borrower's bank account.

To protect consumers from predatory lending practices and illegal loan apps, the RBI issued strict guidelines in 2022 regulating _-to-_ (P2P) lending platforms and digital lending apps, mandating that all loan disbursals must flow directly into the borrower's bank account.