Digital Lending Laws in India and Beyond: Scrutinizing the Regulatory Blind Spot
Avi Modi1, Vaibhav Kesarwani2
1Avi Modi, Student, Gujarat National Law University, Gandhinagar (Gujarat), India.
2Vaibhav Kesarwani, Gujarat National Law University, Gandhinagar (Gujarat), India.
Manuscript received on 23 April 2023 | Revised Manuscript received on 10 May 2023 | Manuscript Accepted on 15 May 2023 | Manuscript published on 30 May 2023 | PP: 1-7 | Volume-3 Issue-1, May 2023 | Retrieval Number: 100.1/ijef.A2542053123 | DOI : 10.54105/ijef.A2542.053123
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© The Authors. Published by Lattice Science Publication (LSP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: With the introduction of the digital fintech ecosystem in India, there has been a paradigm shift in traditional banking practices, one of which is the complex and time-consuming lending procedure in India. With the popularisation of digital credit, lending has become more accessible to the general public, catering to the demands of a larger population that previously could not access this service. Although this is a booming industry with an estimated size of $270 billion in 2022, India’s regulatory framework cannot keep pace with the sector’s rapid growth. It has been a concern for both the industry and the customers. This paper examines the current regulatory regime governing digital credit in India, with a special focus on the RBI Guidelines on Digital Lending, 2022, and provides a comparative analysis of the regime with foreign laws. The paper also addresses the regulatory gap in these laws in India and offers suggestions to enhance the law’s efficiency and effectiveness. The study employs a doctrinal research approach, which involves an extensive review of the literature and an analysis of the regulatory frameworks in India and foreign countries, highlighting the challenges faced by India’s digital lending industry. Furthermore, this study’s findings have significant implications for policymakers, digital lending platforms, and consumers in India.
Keywords: Digital Credit, Digital lending, Fintech, RBI Digital Lending Guidelines
Scope of the Article: Banking