Fintech Association Seeks Self-Regulatory Status Amid Digital Lending Concerns

The Fintech Association for Consumer Empowerment (FACE), an industry body comprising prominent startup firms, has applied to the Reserve Bank of India (RBI) to become a self-regulatory organization (SRO) in the digital lending industry. This move comes in response to the RBI's call for suggestions on enforcing regulations for digital lending platforms to curb illegal apps. FACE's member companies, which cater to more than half of the consumer lending market volumes in India, aim to promote consumer empowerment through financial literacy and protection.

Key Takeaways:

FACE, an industry body, has applied to the RBI to become an SRO in the digital lending industry.
FACE's member companies serve more than half of the consumer lending market volumes in India.
The organization aims to promote consumer empowerment through financial literacy and protection.
FACE has been working with regulators, stakeholders, industry players, and consumer groups to address concerns around digital lending.
The application is a response to the RBI's call for suggestions on regulating digital lending platforms.
FACE's goals include promoting responsible lending practices and weeding out predatory lenders.

Ram Rastogi, a member of FACE's governance council, stated that the organization aims to work with the RBI to promote "responsible lending which will uphold ethical practices."

Statistics:

FACE's member companies serve more than half of the consumer lending market volumes in India (no specific figure provided).
The RBI has called for suggestions on regulating digital lending platforms to curb illegal apps.
There were reports of 20 alleged suicides by borrowers in the southern states due to usurious lending practices.

Sources:

"New Delhi, Jan. 21 --" (no specific publication date mentioned)
[Source not explicitly stated; text likely from Knowledge & News Network (KNN) or HT Digital Content Services]*