Mumbai: More than 8,000 complaints against Non-Banking Financial Institutions (NBFCs) have piled up with RBI. These include complaints about bad attitudes of these companies towards customers in relation to debt collection.
Apart from this, there are also complaints about the loan app. RBI is seriously considering taking strict action in this regard.
NBFCs follow an app-based lending approach. Appoint agents for loan recovery. Complaints have been raised that these agents behave badly with the customers to collect the debt. Accordingly, RBI plans to investigate the activities of lending institutions through apps and to formalize this.
The highest number of complaints came from the state of Maharashtra, followed by Karnataka, Delhi, Haryana, Telangana, Andhra Pradesh, Uttar Pradesh, West Bengal, Tamil Nadu and Gujarat.
Most of the complaints are related to the loan process implemented by NBFCs. These are mostly unregistered and operated by individuals. It is also complained that all these charge exorbitant interest rates. Complaints have also been reported that customers who defaulted on their loans were treated badly.
Speaking at a seminar last month, Reserve Bank Governor Shaktikanta Das had said in which ways technological development is causing severe impacts in the financial sector. It is noteworthy that he also said that the Reserve Bank will soon issue appropriate guidelines to regulate digital lending