Online lenders cannot be allowed to charge ‘exorbitant’ rates: Delhi HC

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DELHI’s High Court said on Tuesday that digital lending platforms could not be allowed to charge an “exorbitant” interest rate and observed that it expects the Center and the Reserve Bank of l ‘India are proposing something to fix the interest rate.

“Don’t allow all of these things. You are also the guardian of a little man’s interests, ”Chief Justice DN Patel and Justice Jyoti Singh said, while registering a PIL, seeking to regulate online digital lenders, for a hearing on the 27th. August.

Petition filed by Dharanidhar Karimojji, a freelance digital marketing writer, through attorney Prashant Bhushan, seeks to fix the maximum interest rate charged by online digital providers and implement grievance resolution for borrowers in every state. He alleges that online lending platforms offer instant loans but deduct almost 35-45% of the loan money in the form of platform fees, service charges and other pretexts.

The RBI told the court that the Center should publish a settlement. “We regulate banks and non-bank financial corporations. These online lending platforms are different, ”he told the court.

The court said the interest rate cannot be exorbitant. The Chamber also told the Center that it should “react quickly in this matter”. “RBI cannot say ‘I have no credentials’. The interest rate you should finalize, ”he said.


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