Prashant Muddu, Managing Director & CEO, Jocata said

“While the current set of guidelines means a stricter compliance, it is in line with RBI’s aim to protect borrowers against players that are not genuine. These norms will ensure complete trust and transparency of customers, who often fall prey to illegal lending practices. Banks have always been cautious lenders when it comes to small ticket loans. This makes consumers turn to emerging fintechs and newer credit services. I believe these guidelines are a shift in the digital lending industry that will encourage banks, NBFCs and FinTechs for more data clarity that were earlier masked and also allows boost consumer sentiment. Though the industry at large will be required to change their operations, leading industry players made the requisite tweaks way ahead of the deadline to stay compliant with the norms.”