Adhere to digital loan norms by Nov 30: RBI to lenders
The central bank clarified through a notification that the new norms, released through a circular dated August 10, will be applicable to existing customers availing fresh loans and to new customers getting on-boarded from the date of the circular.
“However, in order to ensure a smooth transition, REs shall be given time till November 30, 2022, to put in place adequate systems and processes to ensure that ‘existing digital loans’ (sanctioned as on the date of the circular) are also in compliance with these guidelines in both letter and spirit,” the RBI said.
Regulated entities (REs), including banks and other lenders, will have time till November 30 to transition existing customer accounts to the new digital lending guidelines, the Reserve Bank of India (RBI) said on Friday.
The central bank clarified through a notification that the new norms, released through a circular dated August 10, will be applicable to existing customers availing fresh loans and to new customers getting on-boarded from the date of the circular.
“However, in order to ensure a smooth transition, REs shall be given time till November 30, 2022, to put in place adequate systems and processes to ensure that ‘existing digital loans’ (sanctioned as on the date of the circular) are also in compliance with these guidelines in both letter and spirit,” the RBI said.
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