The directions were passed while disposing of a public interest litigation (PIL) petition filed by one Dharanidhar Karimojji seeking directions to restrain online digital lenders from charging exorbitant interests.
It was stated that there are nearly 2,000 apps on Google Play Store that offer such services and many of them deduct almost 35%-40% of the loan money as platform fees/ service charges/ processing fees.
The RBI and the government told the court that the RBI has acted on the report of the working group on digital lending and the regulations have been put in place. It was also informed that the certain recommendations have been sent to the Central government for its consideration and the government will take a decision on it soon.
Source: Barandbench
