National, August 8, 2024 – The Fintech Convergence Council (FCC) welcomes the announcements made today by the Monetary Policy Committee (MPC) through its statement on Developmental and Regulatory Policies. The announcements mark a pivotal moment in the evolution of the financial landscape and FCC acknowledges the significant positive impact they will have on the growth of the industry.

With a view to enhance transparency in the lending lifecycle, the Reserve Bank of India (RBI) has mandated that credit institutions report the borrower’s credit information to the Credit Information Companies (CIC) biweekly instead of monthly. This will help provide lenders with a more updated picture of borrowers’ indebtedness and enhance risk assessment processes.

The FCC has been advocating with the RBI, through representations and meetings, to enable such shorter reporting timelines by the CICs. We believe this change will significantly improve the accuracy of credit assessments and contribute to a healthier financial ecosystem.

In addition to this, with a view to enhance transparency and protect consumers, the RBI has announced the creation of a Public Repository of Digital Lending Apps linked to regulated entities. This repository will be based on data submitted by these entities, enabling customers to verify the legitimacy of digital lending apps and avoid falling victim to their fraudulent claims.

The FCC has long been an advocate for greater transparency in the fintech sector. We have been actively promoting within the fintech and EmTech ecosystem the importance of registering for this repository, to ensure the highest standards of integrity and consumer protection.

Mr. Harshvardhan Lunia, Chair, Fintech Convergence Council and Founder CEO, LendingKart said, “We commend this development as a significant step towards enhancing transparency and safeguarding consumers which is expected to ensure operational excellence in the industry. Through the Fintech Convergence Council, we have consistently promoted transparency and integrity, and this will provide greater access for consumers to protect themselves from any illegitimate and fraudulent activities in the digital lending ecosystem.”

FCC believes these initiatives not only strengthen the framework for fintech operations but also foster an environment of trust and security in the sector. The Fintech Convergence Council remains committed to supporting these advancements and looks forward to contributing to the growth of India’s fintech ecosystem