CURRENT AFFAIRS

Detailed explanation-1: -B [Reserve Bank of India] :The Reserve Bank of India (RBI) has released guidelines to strengthen the regulatory framework for digital lending activities.

Detailed explanation-2: -The RBI regulates digital lending in India and its operations as a result of unchecked third-party participation, misspelling, data privacy violations, unethical recovery techniques, and high interest rates.

Detailed explanation-3: -The Reserve Bank’s regulatory framework is focused on the digital lending ecosystem of RBI’s Regulated Entities (REs) and the Lending Service Providers (LSPs) 3 engaged by them to extend various permissible credit facilitation services.

Detailed explanation-4: -2.3. Digital Lending: A remote and automated lending process, largely by use of seamless digital technologies for customer acquisition, credit assessment, loan approval, disbursement, recovery, and associated customer service. 2.4.

Detailed explanation-5: -The business growth in the sector is marked by the success of digital lending companies like Lendingkart, InCred, Mobikwik, and Aye Finance. Millennials and Gen Z are also increasingly embracing the idea of micro-credit and purchase buy now pay later services.