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How to combat fraudulent apps: Strategies for RBI, lenders, consumers

In the ever-evolving landscape of digital lending, the collaboration of the RBI, lenders, and consumers is essential to thwart fraudulent apps. Here's how these stakeholders can join forces to address this pressing issue

How to combat fraudulent apps: Strategies for RBI, lenders, consumers
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How to combat fraudulent apps: Strategies for RBI, lenders, consumers

In the ever-evolving landscape of digital lending, the collaboration of the RBI, lenders, and consumers is essential to thwart fraudulent apps. Here's how these stakeholders can join forces to address this pressing issue:

Regulator's Role:

The RBI plays a pivotal role in supervising the interactions between regulated entities and lending service providers. Establishing an independent body to verify digital lending apps, as recommended by the Parliamentary Standing Committee on Finance, can enhance transparency and accountability. With its position and partnerships, the RBI is well-positioned to authenticate these apps and maintain a whitelist, guiding other entities like app marketplaces.

Industry Collaboration:

Industry-wide collaboration is crucial to foster trust and accountability. The establishment of an independent self-regulatory body for digital lending apps can streamline efforts and facilitate communication between regulators and industry players. By developing a framework to identify valid lending apps and creating a whitelist repository, industry bodies can assist regulators in combating illegal practices effectively.

Consumer Awareness:

At the grassroots level, consumer awareness is paramount. Stakeholders must undertake large-scale awareness campaigns to educate consumers about the risks associated with illegal lending apps. It's a collective responsibility of regulators, banks, lending companies, and app marketplaces to guide consumers towards legitimate and validated apps for loan purposes.


Fraudulent apps pose a significant threat to economic growth, making it imperative for all stakeholders to unite in combating this issue. By leveraging the expertise of regulators, fostering industry collaboration, and empowering consumers through awareness initiatives, we can safeguard the integrity of the digital lending ecosystem and contribute to the nation's economic prosperity.

Dwaipayan Bhattacharjee
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