New Delhi: The number of companies operating illegally in India, lending through mobile phone processors, is on the rise, according to a Reserve Bank working group report.
According to the report, more than 600 digital credit companies in the country are operating illegally. These mostly work through processors on the ‘Android’ phone.
In India alone, the study found that there are about 1,100 lending processors in operation. Complaints about these companies are also on the rise. From January last year to March this year alone, about 2,562 complaints were lodged on the Reserve Bank’s website.
Most of these complaints are from companies that are not regulated by the Reserve Bank. It seems that action will be taken against such companies soon. The Reserve Bank of India has recommended that a separate law be enacted to protect the interests of consumers.
Last January, the Reserve Bank set up a task force to look into the issue of digital lending through websites and mobile phone processors.