Soon, unregulated loan apps may be banned with Rs 1 cr penalty, 10-yr jail

The central government has introduced a draft bill, proposing stringent measures to combat unregulated lending. The new legislation could see violators facing up to 10 years in prison alongside hefty fines.

The Reserve Bank of India’s (RBI) Working Group on Digital Lending first recommended such measures in its November 2021 report. Among its suggestions was the introduction of laws to prohibit unregulated lending activities.