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ARTICLE · 18 FEBRUARY 2025

Draft Bill On The Banning Of Unregulated Lending Activities

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On December 13, 2024, the Department of Financial Services under the Ministry of Finance released a draft bill titled ‘The Banning of Unregulated Lending Activities (BULA)' ("Draft Bill") with the intension of curbing unregulated lending (including digital lending) in India.

IndiaTechnology
Abhishek Ray
Abhishek Ray
Zahan Kalyaniwalla
Zahan Kalyaniwalla
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On December 13, 2024, the Department of Financial Services under the Ministry of Finance released a draft bill titled 'The Banning of Unregulated Lending Activities (BULA)' ("Draft Bill") with the intension of curbing unregulated lending (including digital lending) in India.

With the view of protecting consumers' interests in relation to unregulated lending activities, the Reserve Bank of India ("RBI") incorporated a working group on digital lending and in November 2021, the working group submitted a report highlighting the need to introduce a set of measures to ban unregulated lending in India. Whilst the RBI has released guidelines on digital lending previously, the Draft Bill proposes to ban all unauthorised entities or persons from undertaking any public lending business activity (including digital lending). The Draft Bill has been addressed to governmental and regulatory bodies and industry associations. The Ministry of Finance is currently not seeking

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