MUMBAI: Illegal lenders have multiplied the web through the internet by using various terms like instant loan and quick loan. The Reserve Bank of India (RBI) has warned that more than 600 illegal lenders are operating in India. The value of the digital credit market has increased from Rs 11,671 crore in 2017 to Rs 1.41 lakh crore in 2020. Using this, about 1,100 credit processing companies are involved in digital credit services in India.
But a study by the Reserve Bank found that more than 600 of these companies were operating illegally. It has come as a shock that such companies are behaving in an objectionable manner in collecting debt and stealing mobile details of borrowers. Since January last year, 2,562 complaints have been lodged against digital lenders. Most of the complaints came from states including Maharashtra, Karnataka, Tamil Nadu, Delhi, Haryana, Andhra Pradesh and Uttar Pradesh. Customers are advised to confirm whether the company is registered with the Reserve Bank before giving personal details to any company. The Reserve Bank of India (RBI) has warned lenders to go fully to the office and seek credit only.