Mr Jatinder Handoo
CEO, Digital Lenders’ Association of India (DLAI)
Jatinder is a fintech and public policy professional in the Inclusive finance space. In the past, he worked as Vice President of State Initiatives (Government Relations) at India's Premier Microfinance Industry Association – MFIN, which is a Self-Regulatory Organisation recognised by the Reserve Bank of India. In his previous roles at fintech firms like FINO PayTech Ltd, he spearheaded initiatives to develop strategic business relationships with multi-stakeholders like NABARD, SIDBI, World Bank-IFC, GiZ, leading global corporate foundations etc. He also spearheaded digital finance and financial services literacy projects for un(der) banked customers at FINO.
Mr Jatinder Handoo at the Harmonising ESG, CSR, CDR and SDGs, an India 2047 - Centre of Excellence Workshop
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Mr Jatinder Handoo
CEO, Digital Lenders’ Association of India (DLAI)
Key Points
- Significant growth potential of the digital lending sector, with forecasts indicating a substantial increase in market size by 2030.
- Products like consumer finance and MSME finance have a predominant share in consumer lending.
- A robust regulatory framework governing digital lending, specifically mentioning guidelines set by the Reserve Bank of India (RBI).
- Industry associations have a role in establishing codes of conduct, advisories and standards to ensure responsible business practices.
- There are challenges posed by unauthorised lending apps, leading to consumer grievances and potential financial risks.
- Need for a tech-friendly KYC regime aligned with digital models and the complexities of address verification.
- Frequent regulatory updates and circulars issued by the RBI, emphasise the need for practitioners to adapt to evolving regulatory requirements.
Recommendations
Collaboration
- Advocate for collaborative efforts with government agencies and regulators to address unauthorised lending apps and KYC compliance issues.
- Strengthen self-regulatory organisations (SROs) to facilitate a consensus-based approach to business conduct and regulatory compliance within the digital lending sector.
- Advocate for developing tech-based KYC solutions that align with digital lending models and streamline customer verification processes.
Regulatory Framework
- Treat consumer finance and MSME finance as key segments within digital lending that will be critical for India 2047.
- Need of a robust regulatory framework governing digital lending, with specific reference to guidelines set by the Reserve Bank of India (RBI).
- Address challenges related to unauthorised lending apps, KYC compliance and the impact of frequent regulatory updates issued by the RBI.
Tech-Friendly Solutions
- Advocated for developing tech-based KYC solutions aligned with digital lending models to streamline customer verification processes.
- Focus on generating consumer awareness of responsible lending practices, grievance redressal mechanisms, and potential risks associated with unauthorised lending apps.
- Encourage a culture of adaptability and continuous learning within the industry to keep pace with regulatory changes and technological advancements.
- Advocated for collaborative efforts with government agencies and regulators to address unauthorised lending apps and KYC compliance issues.
Awareness and Education
- Emphasised the importance of generating awareness among consumers regarding responsible lending practices, grievance redressal mechanisms and potential risks associated with unauthorised lending apps.
- To encourage a culture of adaptability and continuous learning within the industry to keep pace with regulatory changes and technological advancements.
