New Regulation Targets Unregulated Lending with Strict Penalties

The central government has put forward a bill aimed at curbing unregulated lending. This includes stringent penalties such as imprisonment for up to 10 years and monetary fines. The bill proposes banning unauthorized entities from conducting lending activities and has prompted calls for comments on the draft legislation.

The central government introduced a bill aiming to restrict unregulated lending, proposing penalties including up to 10 years of imprisonment. The move seeks to protect consumer interests by regulating lending activities.

The draft bill specifies that unauthorized lending activities will face strict restrictions and outlines punitive measures for violations, including fines and potential CBI investigations.

The proposal, open for public comment until February 2025, responds to issues like fraudulent loan apps that have harmed borrowers, highlighting ongoing efforts to safeguard financial practices.

(With inputs from agencies.)