The Reserve Bank of India (RBI) recently constituted a working group on digital lending -- including lending through online platforms and mobile applications. This step was a result of various instances where the digital lending applications were in news for all the wrong reasons.

This reasons included reports of people committing suicide due to alleged harassment by such lenders.

While the online lenders have provided an ease never seen before, mushrooming of various unregulated applications entails downsides such as lack of verification of the persons involved, false claims, theft of personal data, non-transparency of transactions, violation of extant guidelines on outsourcing of financial services and Fair Practices Code etc.&nbsp;

In view of such lack of safeguards, a lot of individuals/small businesses have been lured by a growing number of unauthorised and unverified digital lending platforms and mobile applications, claiming to grant instant and hassle-free loans. The RBI, therefore, by virtue of a press release dated December 23, 2020, bearing No. 2020-2021/819 (“Press Release”), issued a public warning against such unauthorised digital lending platforms and/or applications over deployment of questionable recovery methods and the charging of extravagant interest rates along with other hidden charges by such lenders.

The RBI’s intent through the circular was to caution the public at large, especially retail individuals, small traders, and other small-scale borrowers.&nbsp;

Many of the individual or small businesses do not have the requisite documents which are required to obtain credible loans from the accredited banking institutions and thus, they opt for money lending services which are informal and less stringent.&nbsp;

This makes such small businesses more prone to getting entrapped in such money lending schemes.&nbsp;

Therefore, the RBI has urged the borrowers to verify the antecedents of such lenders offering loans on digital lending platforms or through mobile applications.

Earlier, the RBI had also issued an official notification dated June 24, 2020 (“Notification”) mandating strict adherence to the Fair Practices Code and outsourcing guidelines for the loans sourced by accredited banks and Non-Banking Financial Companies (NBFCs) through such digital lending platforms.&nbsp;

The notification prescribes that banks and NBFCs offer lending services either directly through their own digital platforms or through a digital lending platform under an outsourcing arrangement. However, in most cases, these digital platforms and mobile applications do not disclose the name of the bank/NBFC and thus, the customers are left at their mercy without having access to a systematised grievance redressal mechanism, which is otherwise available under the regulatory framework.&nbsp;

The RBI had also directed such lending platforms and mobile applications to issue a sanction letter to the concerned borrowers on the letter head of the concerned bank/NBFC before the execution of the loan agreement.&nbsp;

Therefore, to protect the general public from fraudulent activities of unauthorised money lenders providing such services through their own digital lending platform or through an outsourced lending platform, the RBI categorically directed them to strictly adhere to the Fair Practices Code in true letter and spirit.&nbsp;

RBI has also placed the onus of compliance obligations under the regulatory instructions regarding outsourcing of financial and IT services with the concerned bank/NBFC and not on the outsourced agency. In view thereof, the RBI has further directed the banks and NBFCs, engaging digital lending platforms as their agents to source borrowers and/or to recover dues to: (a) disclose the name of the digital lending platforms engaged as agents on their websites; (b) to disclose to the customer the name of the bank/ NBFC on whose behalf such digital lending platforms are interacting with him; (c) to issue the sanction letter to the borrower on the letter head of the concerned bank/ NBFC before execution of the loan agreement; (d) to furnish a copy of the loan agreement along with a copy all enclosures quoted in the loan agreement to the borrowers at the time of sanction/ disbursement of loans; (e) to ensure effective oversight and monitoring over such digital lending platforms; and (f) to undertake adequate efforts towards creation of awareness about a proper grievance redressal mechanism. Any violation thereof by banks and/ or NBFCs will be viewed strictly by the RBI.

Recently however, in December 2020, owing to the increased reporting of incidents pertaining to unauthorised digital transactions, the RBI was forced to publish a press release to alert the general public of such activities.&nbsp;

The RBI also advised consumers to never share copies of their KYC documents with unidentified persons or unverified/unauthorised mobile applications. Further, the RBI has repeatedly advised for reporting such activities either to the concerned law enforcement agencies or by using the Sachet portal to file online complaints.

It is evident that the RBI is taking stern and imperative measures against such unauthorised lending digital platforms. The steps to eradicate exploitative practices of unauthorised lending need to be tackled with multi-pronged approach consisting of regulation, increase in awareness and forthrightness on the part of genuine players in raising the transparency standards of lending.&nbsp;

The steps taken by the RBI appear to be in the right direction and an earnest step towards the eradication of predatory practices by such unauthorised lending players and for protection of the data and privacy of such lenders.

(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

The Reserve Bank of India (RBI) recently constituted a working group on digital lending -- including lending through online platforms and mobile applications. This step was a result of various instances where the digital lending applications were in news for all the wrong reasons.

The Reserve Bank of India (RBI) recently constituted a working group on digital lending -- including lending through online platforms and mobile applications. This step was a result of various instances where the digital lending applications were in news for all the wrong reasons. This reasons included reports of people committing suicide due to alleged harassment by such lenders. While the online lenders have provided an ease never seen before, mushrooming of various unregulated applications entails downsides such as lack of verification of the persons involved, false claims, theft of personal data, non-transparency of transactions, violation of extant guidelines on outsourcing of financial services and Fair Practices Code etc. In view of such lack of safeguards, a lot of individuals/small businesses have been lured by a growing number of unauthorised and unverified digital lending platforms and mobile applications, claiming to grant instant and hassle-free loans. The RBI, therefore, by virtue of a press release dated December 23, 2020, bearing No. 2020-2021/819 (“Press Release”), issued a public warning against such unauthorised digital lending platforms and/or applications over deployment of questionable recovery methods and the charging of extravagant interest rates along with other hidden charges by such lenders. The RBI’s intent through the circular was to caution the public at large, especially retail individuals, small traders, and other small-scale borrowers. Many of the individual or small businesses do not have the requisite documents which are required to obtain credible loans from the accredited banking institutions and thus, they opt for money lending services which are informal and less stringent. This makes such small businesses more prone to getting entrapped in such money lending schemes. Therefore, the RBI has urged the borrowers to verify the antecedents of such lenders offering loans on digital lending platforms or through mobile applications. Earlier, the RBI had also issued an official notification dated June 24, 2020 (“Notification”) mandating strict adherence to the Fair Practices Code and outsourcing guidelines for the loans sourced by accredited banks and Non-Banking Financial Companies (NBFCs) through such digital lending platforms. The notification prescribes that banks and NBFCs offer lending services either directly through their own digital platforms or through a digital lending platform under an outsourcing arrangement. However, in most cases, these digital platforms and mobile applications do not disclose the name of the bank/NBFC and thus, the customers are left at their mercy without having access to a systematised grievance redressal mechanism, which is otherwise available under the regulatory framework. The RBI had also directed such lending platforms and mobile applications to issue a sanction letter to the concerned borrowers on the letter head of the concerned bank/NBFC before the execution of the loan agreement. Therefore, to protect the general public from fraudulent activities of unauthorised money lenders providing such services through their own digital lending platform or through an outsourced lending platform, the RBI categorically directed them to strictly adhere to the Fair Practices Code in true letter and spirit. RBI has also placed the onus of compliance obligations under the regulatory instructions regarding outsourcing of financial and IT services with the concerned bank/NBFC and not on the outsourced agency. In view thereof, the RBI has further directed the banks and NBFCs, engaging digital lending platforms as their agents to source borrowers and/or to recover dues to: (a) disclose the name of the digital lending platforms engaged as agents on their websites; (b) to disclose to the customer the name of the bank/ NBFC on whose behalf such digital lending platforms are interacting with him; (c) to issue the sanction letter to the borrower on the letter head of the concerned bank/ NBFC before execution of the loan agreement; (d) to furnish a copy of the loan agreement along with a copy all enclosures quoted in the loan agreement to the borrowers at the time of sanction/ disbursement of loans; (e) to ensure effective oversight and monitoring over such digital lending platforms; and (f) to undertake adequate efforts towards creation of awareness about a proper grievance redressal mechanism. Any violation thereof by banks and/ or NBFCs will be viewed strictly by the RBI. Recently however, in December 2020, owing to the increased reporting of incidents pertaining to unauthorised digital transactions, the RBI was forced to publish a press release to alert the general public of such activities. The RBI also advised consumers to never share copies of their KYC documents with unidentified persons or unverified/unauthorised mobile applications. Further, the RBI has repeatedly advised for reporting such activities either to the concerned law enforcement agencies or by using the Sachet portal to file online complaints. It is evident that the RBI is taking stern and imperative measures against such unauthorised lending digital platforms. The steps to eradicate exploitative practices of unauthorised lending need to be tackled with multi-pronged approach consisting of regulation, increase in awareness and forthrightness on the part of genuine players in raising the transparency standards of lending. The steps taken by the RBI appear to be in the right direction and an earnest step towards the eradication of predatory practices by such unauthorised lending players and for protection of the data and privacy of such lenders. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

Lending on digital platforms and mobile applications

China's cyber watchdog said on Thursday it has deleted close to 8,000 "malicious" mobile apps, as regulators step up efforts to tighten control over the country's internet.

The Cyberspace Administration of China (CAC) said in a statement it had ordered telecom operators to shut down the services of 7,873 apps after finding they had overcharged and cheated users as well as stolen information.

It launched the campaign in September with other Chinese government ministries to target "malicious mobile apps that infringe on users' rights", the agency said.

Among the apps targeted by the agency was a Chinese version of "Fruit Ninja", which caused economic losses to users by tricking them into signing up to unwanted fee-based services, the agency said.

There are three games named "Fruit Ninja" registered with China's publishing regulator and it was unclear which one was deleted by the CAC.

A game with the same name was previously launched by iDreamSky and distributed by Tencent in 2013. However, it was later removed from all channels in 2016, according to iDreamSky.

Other games such as "Bathroom Goddess" and "Naughty Housemaid" that were developed and published by other firms committed "online hooligan activities" like information theft, spamming, and forced downloads.

China's video game market, the world's largest, has been under strict scrutiny since last year when authorities stopped approving new titles for almost a year. It recently resumed approvals but industry leaders Tencent and NetEase have yet to receive any.

Political control of the internet has also tightened under President Xi Jinping, an effort that has accelerated since 2016 as the ruling Communist Party seeks to crack down on dissent on social media.

The CAC on Wednesday said it had deleted more than 7 million pieces of online information as well as 9,382 mobile apps, and criticised a news app run by Tencent for spreading "vulgar and low-brow information.

China's cyber watchdog said on Thursday it has deleted close to 8,000 "malicious" mobile apps, as regulators step up efforts to tighten control over the country's internet.

China's cyber watchdog said on Thursday it has deleted close to 8,000 "malicious" mobile apps, as regulators step up efforts to tighten control over the country's internet. The Cyberspace Administration of China (CAC) said in a statement it had ordered telecom operators to shut down the services of 7,873 apps after finding they had overcharged and cheated users as well as stolen information. It launched the campaign in September with other Chinese government ministries to target "malicious mobile apps that infringe on users' rights", the agency said. Among the apps targeted by the agency was a Chinese version of "Fruit Ninja", which caused economic losses to users by tricking them into signing up to unwanted fee-based services, the agency said. There are three games named "Fruit Ninja" registered with China's publishing regulator and it was unclear which one was deleted by the CAC. A game with the same name was previously launched by iDreamSky and distributed by Tencent in 2013. However, it was later removed from all channels in 2016, according to iDreamSky. Other games such as "Bathroom Goddess" and "Naughty Housemaid" that were developed and published by other firms committed "online hooligan activities" like information theft, spamming, and forced downloads. China's video game market, the world's largest, has been under strict scrutiny since last year when authorities stopped approving new titles for almost a year. It recently resumed approvals but industry leaders Tencent and NetEase have yet to receive any. Political control of the internet has also tightened under President Xi Jinping, an effort that has accelerated since 2016 as the ruling Communist Party seeks to crack down on dissent on social media. The CAC on Wednesday said it had deleted more than 7 million pieces of online information as well as 9,382 mobile apps, and criticised a news app run by Tencent for spreading "vulgar and low-brow information.

China deletes over 7000 'malicious' mobile apps claiming data privacy breach

As self-driving cars come closer to being common on American roads, much of the rhetoric promoting them has to do with safety. About 40,000 people die on U.S. roads every year, and driver errors are linked to more than 90 per cent of crashes. But many of the biggest advocates of autonomous vehicles aren&rsquo;t car companies looking to improve the safety of their existing products. Huge backing for self-driving technologies is coming from Silicon Valley giants like Google and Apple.

Those of us who have studied the relationship between technology and society tend to look more carefully at the motivations behind any technological push. In this case, it&rsquo;s clear that in addition to addressing safety concerns, Silicon Valley firms have a strong incentive to create a new venue for increasing the use of their digital devices. Every minute people spend on their mobile phones provides data &ndash; and often money &ndash; to tech companies.

At present, digital devices and driving are in conflict: There are serious, often fatal, consequences when drivers use smartphones to talk or to text. Regulators and safety advocates look to resolve that conflict by banning phone use while driving &ndash; as has happened in virtually every state. But the tech companies are taking a different approach. The obvious answer for Silicon Valley is creating an automobile in which continuous cellphone use no longer poses a threat to anyone.

Not a new idea

The idea of a car so capable a driver is not needed isn&rsquo;t new. As far back as the 1950s, the Saturday Evening Post ran an illustration imagining a family playing a board game (in a convertible!) as the car conducts itself down the road. When self-driving cars actually take to the streets in large numbers, today&rsquo;s families likely won&rsquo;t be playing Scrabble &ndash; though Words With Friends and other mobile games are a near certainty. Every passenger is likely to be using a mobile device.

In recent years, the amount of time adults spend on their mobile devices (beyond actual phone calls) has grown rapidly. At the moment, it&rsquo;s around four hours a day for the average adult in the U.S. However, that rapid growth is likely to slow down as people run out of time that&rsquo;s available for them to use their devices.

Unless, of course, there&rsquo;s a new block of time that suddenly opens up. The average American now spends about 48 minutes in a car every day, a sizable opportunity for increased cellphone use.

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Chris Urmson, former director of Google&rsquo;s self-driving car project, made this interest clear in a 2016 talk, saying that autonomous vehicles offer the &ldquo;exciting&rdquo; possibility of creating &ldquo;another room for you&rdquo; where, among other activities, you can watch videos. The investment analysts at Morgan Stanley have talked about autonomous cars becoming a &ldquo;fourth screen&rdquo; in Americans&rsquo; lives (in addition to the home TV, personal computer and mobile phones or tablets).

Perhaps the most explicit declaration of this interest came from Jia Yueting, co-founder of the budding Chinese automaker LeEco, when he said, &ldquo;We see the car in the future as an extension of the internet, another entry point for us to sell web-based content and services.&rdquo;

So as the public conversation around autonomous cars highlights the safety advantages, don&rsquo;t forget the tech industry&rsquo;s powerful desire for more profits, which goes well beyond simply saving us from ourselves.

This article was originally published on <a href="http://theconversation.com" rel="nofollow" target="blank">The Conversation</a>. Read the <a href="https://theconversation.com/why-silicon-valley-wants-you-to-text-and-drive-87972" rel="nofollow" target="blank">original article</a>.

(Disclaimer: The author writes here in a personal capacity).

Image Credit:&nbsp;Shutterstock

Why do tech companies care so much about self-driving cars? If drivers no longer need to pay attention to the road, they can use their mobile devices even more

As self-driving cars come closer to being common on American roads, much of the rhetoric promoting them has to do with safety. About 40,000 people die on U.S. roads every year, and driver errors are linked to more than 90 per cent of crashes. But many of the biggest advocates of autonomous vehicles aren’t car companies looking to improve the safety of their existing products. Huge backing for self-driving technologies is coming from Silicon Valley giants like Google and Apple. Those of us who have studied the relationship between technology and society tend to look more carefully at the motivations behind any technological push. In this case, it’s clear that in addition to addressing safety concerns, Silicon Valley firms have a strong incentive to create a new venue for increasing the use of their digital devices. Every minute people spend on their mobile phones provides data – and often money – to tech companies. At present, digital devices and driving are in conflict: There are serious, often fatal, consequences when drivers use smartphones to talk or to text. Regulators and safety advocates look to resolve that conflict by banning phone use while driving – as has happened in virtually every state. But the tech companies are taking a different approach. The obvious answer for Silicon Valley is creating an automobile in which continuous cellphone use no longer poses a threat to anyone. Not a new idea The idea of a car so capable a driver is not needed isn’t new. As far back as the 1950s, the Saturday Evening Post ran an illustration imagining a family playing a board game (in a convertible!) as the car conducts itself down the road. When self-driving cars actually take to the streets in large numbers, today’s families likely won’t be playing Scrabble – though Words With Friends and other mobile games are a near certainty. Every passenger is likely to be using a mobile device. In recent years, the amount of time adults spend on their mobile devices (beyond actual phone calls) has grown rapidly. At the moment, it’s around four hours a day for the average adult in the U.S. However, that rapid growth is likely to slow down as people run out of time that’s available for them to use their devices. Unless, of course, there’s a new block of time that suddenly opens up. The average American now spends about 48 minutes in a car every day, a sizable opportunity for increased cellphone use. × Chris Urmson, former director of Google’s self-driving car project, made this interest clear in a 2016 talk, saying that autonomous vehicles offer the “exciting” possibility of creating “another room for you” where, among other activities, you can watch videos. The investment analysts at Morgan Stanley have talked about autonomous cars becoming a “fourth screen” in Americans’ lives (in addition to the home TV, personal computer and mobile phones or tablets). Perhaps the most explicit declaration of this interest came from Jia Yueting, co-founder of the budding Chinese automaker LeEco, when he said, “We see the car in the future as an extension of the internet, another entry point for us to sell web-based content and services.” So as the public conversation around autonomous cars highlights the safety advantages, don’t forget the tech industry’s powerful desire for more profits, which goes well beyond simply saving us from ourselves. This article was originally published on The Conversation. Read the original article. (Disclaimer: The author writes here in a personal capacity). Image Credit: Shutterstock

Opinion: Why Google & Apple want you to text and drive

Sweden&#39;s data protection agency banned King, the gaming company that owns Candy Crush, from collecting statistics on the ethnic backgrounds and sexual orientation of employees, even when used for promoting diversity.

The company defended its practice, saying it did not intend to discriminate against anyone and that employees were free to decide whether or not to provide the information to their employer, the agency said.

&quot;The information is collected on an individual level in order to see if, over time, sexual orientation or belonging to a specific ethnic group could have an impact on career opportunities,&quot; the agency said, after an investigation.

But Swedish law, which conforms to European Union regulations, bans the collection of this type of information without clearance from authorities, the agency said. In King&#39;s case, it would not be justified, it added.

The Swedish regulators also took issue with the company&#39;s claim that the information was collected on a voluntary basis, saying &quot;employees are in a relationship of dependency with their employer&quot;.

(AFP)

Company defended its practice saying employees were free to decide whether or not to provide the information

Sweden's data protection agency banned King, the gaming company that owns Candy Crush, from collecting statistics on the ethnic backgrounds and sexual orientation of employees, even when used for promoting diversity. The company defended its practice, saying it did not intend to discriminate against anyone and that employees were free to decide whether or not to provide the information to their employer, the agency said. "The information is collected on an individual level in order to see if, over time, sexual orientation or belonging to a specific ethnic group could have an impact on career opportunities," the agency said, after an investigation. But Swedish law, which conforms to European Union regulations, bans the collection of this type of information without clearance from authorities, the agency said. In King's case, it would not be justified, it added. The Swedish regulators also took issue with the company's claim that the information was collected on a voluntary basis, saying "employees are in a relationship of dependency with their employer". (AFP)

Candy Crush maker banned from gathering staff's ethnic data

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