<p>The Reserve Bank on Wednesday cautioned the public not to fall prey to the growing number of unauthorised digital lending platforms and mobile apps.</p>.<p>In a release, the RBI noted that there have been reports about individuals/small businesses falling prey to such unauthorised platforms and apps which promise quick and hassle-free loans.</p>.<p>Reports also refer to excessive rates of interest and additional hidden charges being demanded from borrowers; adoption of unacceptable and high-handed recovery methods; and misuse of agreements to access data on the mobile phones of the borrowers, it added.</p>.<p>"Members of public are hereby cautioned not to fall prey to such unscrupulous activities and verify the antecedents of the company/ firm offering loans online or through mobile apps," the RBI said.</p>.<p>The central bank also asked customers to never share copies of KYC documents with unidentified persons or unauthorised apps and "report such Apps/Bank Account information associated with the Apps to concerned law enforcement agencies."</p>.<p>Besides, the Sachet portal (https:achet.rbi.org.in) can also be used to file an online complaint.</p>.<p>Legitimate public lending activities can be undertaken by banks and non-banking financial companies (NBFCs) registered with RBI and other entities who are regulated by the state governments under statutory provisions.</p>.<p>The Reserve Bank has also mandated that digital lending platforms which are used on behalf of banks and NBFCs should disclose name of the bank/NBFC upfront to the customers.</p>.<p>The names and addresses of the registered NBFCs can be accessed on the RBI website.</p>
<p>The Reserve Bank on Wednesday cautioned the public not to fall prey to the growing number of unauthorised digital lending platforms and mobile apps.</p>.<p>In a release, the RBI noted that there have been reports about individuals/small businesses falling prey to such unauthorised platforms and apps which promise quick and hassle-free loans.</p>.<p>Reports also refer to excessive rates of interest and additional hidden charges being demanded from borrowers; adoption of unacceptable and high-handed recovery methods; and misuse of agreements to access data on the mobile phones of the borrowers, it added.</p>.<p>"Members of public are hereby cautioned not to fall prey to such unscrupulous activities and verify the antecedents of the company/ firm offering loans online or through mobile apps," the RBI said.</p>.<p>The central bank also asked customers to never share copies of KYC documents with unidentified persons or unauthorised apps and "report such Apps/Bank Account information associated with the Apps to concerned law enforcement agencies."</p>.<p>Besides, the Sachet portal (https:achet.rbi.org.in) can also be used to file an online complaint.</p>.<p>Legitimate public lending activities can be undertaken by banks and non-banking financial companies (NBFCs) registered with RBI and other entities who are regulated by the state governments under statutory provisions.</p>.<p>The Reserve Bank has also mandated that digital lending platforms which are used on behalf of banks and NBFCs should disclose name of the bank/NBFC upfront to the customers.</p>.<p>The names and addresses of the registered NBFCs can be accessed on the RBI website.</p>