Shark Tank India Judge Ashneer Grover Lambasts RBI’s Digital Lending Guidelines As The Worst
- Most Netizens Disagree Though And Rightfully So!
By James Paul September 6, 2022
RBI governor Urjit Patel needs to have a word with telly’s most popular Shark from the Shark Tank India show – Ashneer Grover. The former boss and founder of fintech giant BharaPe is irked by RBI’s digital lending guidelines. So much that Ashneer trashed them as the worst ever. He tweets that if you consider Unified Payment Interface (UPI) as the best tech / regulatory innovation then the recent RBI’s guidelines for lending have to be the worst. He takes potshots on the Indian regulatory agency that they essentially can’t do their job. Ashneer writes.
Essentially RBI is telling Fintechs ‘Bhai mat karo digital lending shending! Banks se hoti nahi, humein samajh aati nahi, aur pen paper ki sale bhi kam hogi”
(RBI to Fintechs – Bro, don’t do this digital lending stuff! Banks can’t do it. We haven’t figured it out, besides pen and paper sales will plummet.)
If UPI is the best tech / regulatory innovation in the world, the RBI’s Digital Lending Guidelines have to be the worst. Essentially RBI is telling Fintechs ‘Bhai mat karo digital lending shending ! Banks se hoti nahi, humein samajh aati nahi, aur pen paper ki sale bhi kam hogi’
— Ashneer Grover (@Ashneer_Grover) September 5, 2022
RBI had been acting tough on digital lending after many incidents of unethical practices by quite a few lenders came to light. Reports of harassment by digital lenders and their recovery agents malpractices had been doing the rounds for a while. Some of them even resort to physically harassing the borrowers and humiliating them in public. This is has also led to unfortunate suicides and even murders.
RBI claims that their new guidelines are to safeguard the borrowers from the growing fangs of digital lending malpractices. Not that every fintech worth its salt is involved. Few rogue elements have tainted the entire industry. The RBI’s digital lending guidelines will be effective on REs (regulated entities) that include district central cooperative banks, urban cooperative banks, commercial banks, state cooperative banks and NBFCs (non banking financial companies) including housing finance companies.
The guidelines reduce Lending Service Providers (LSPs) from direct interference and dictating loan disbursals and repayments between the bank account of the borrower and the RE. The guideline also prohibits automatic increase of credit limits without the explicit consent of the borrowers.
Isn’t that a win-win for the borrowers?
That’s what experts and concerned netizens reminded Ashneer Grover on his tweet. Here’s few reactions –
You have totally ignored the harassment part Mr Grover. And recently in an interview to @ZeeBusiness Gov said that by and large the guidelines have been welcomed by all. So why are so upset? Make specific points if any issue.
— Brajesh Kumar Mishra (@BrajeshKMZee) September 5, 2022
You should also try to listen cries of thousands of people who either committed suicide or got into depression due to harassment by digital lenders.
Try once listening to their cries in their original voice.
— Rahul (@Rahul07773041) September 5, 2022
When u unable to implement RBI guide lines 😂 pic.twitter.com/P0uvygvPCH
— Newton Bank Kumar (@idesibanda) September 5, 2022
Lending by these fintech is nothing but trap… authorities are not looking into this… Rs. 8000. 00 loan amount Rs. 3200. 00 charges deducted upfront and balance amount to be paid in 7 days this is fintech lending.. @BAAHUBALII @narendramodi
— Devinder Singh Rawat (@Devinder_SRawat) September 5, 2022
Digital lending is like loan sharks. I have used Postpe. In disguise of a credit card it gives you limit. Once you cross a due date, there is no option to pay the minimum if your income is delayed. Instead they’ll charge interest , penalty and threaten with CIBIL score.
— MSMElephant (@MSMElephant) September 5, 2022
Yea! You’re right, lenders like Bharatpe have hired goons to recover money. Who are using all kind of tactics to harass the person who takes the loan and his contacts(who have no idea)
— Amrish (@CodenameBazinga) September 5, 202
To know Ashneer one doesn’t have to look beyond the PMC Bank takeover scam. Not a penny of depositors money is given back till now. Ashneer made a deal with the RBI to slowly pay back depositors in 10 years time with only 2.75 per cent cost. Ultimate tank deal?
— Naresh Nayak (@NareshNayak0) September 5, 2022
Sahi hai boss… In the name of Digital Lending, charging 52% Interest and saying fintech company is doing Innovation? This is not Innovative… This things need to be stopped..
Those fintech app is modern version of Shahukar… https://t.co/OXgE4zF9ni
— Kanaiyalal Jain (@Kanujain3) September 5, 2022
Hello @Ashneer_Grover, I guess i should expose your company @bharatpeindia. We have received multiple complaints against your company. Would you like to face legal consequences?
Since 2 years, we have been struggling to save many people’s lives.
— Pravin Kalaiselvan (@Pravinkks) September 6, 2022
