Pakistan's regulators decided to issue new digital lending guidelines.
(Photo : Photo illustration by Christopher Furlong/Getty Images)
A hand holding coins on March 11, 2005 in Glasgow, Scotland. As of October 2005 the UK minimum wage will be raised to GBP5.05 from GBP4.85, while 18 to 21 year olds will be paid GBP4.25. An esitmated 1 million people will benefit from the increase.
These new policies are expected to prevent sketchy practices from becoming more rampant across the South Asian market.
Because of this problem, SECP (Securities and Exchange Commission of Pakistan) announced new digital lending regulations on Wednesday, Dec. 28.
"SECP has issued digital lending standards applicable on Non-Banking Finance Companies (NBFCs) undertaking lending activities through digital channels / mobile applications (Apps)," said the department via its official press release.
Pakistan's New Digital Lending Guidelines
According to TechCrunch's latest report, one of Pakistan's new digital lending rules is the disclosure of key fact statements.
(Photo : Photo by ASIF HASSAN/AFP via Getty Images)
In this picture taken on January 11, 2022, a foreign currency dealer counts US dollar notes at a shop in Karachi. - Pakistan's inflation hit about 10 percent last year, according to the World Bank, with cooking oil prices up 130 percent since Prime Minister Imran Khan took power, as well as the cost of fuel up 45 percent.
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These include granted credit amount, loan duration, all fees, and charges, as well as annual percentage rates.
The mentioned information should be shared with the consumers via video, email, audio, or text messages in both Urdu and English languages.
Aside from this, non-banking financial companies should also avoid accessing consumers' contact lists, phone books, and pictures.
Avoiding Digital Lending Scams
BankBazaar.com's CTO Muraru Sridharan said that cyber financial scams and other similar malicious campaigns are becoming more rampant.
This is why it is important to know how to avoid digital lending scammers.
Financial Express provided some tips so that you wouldn't become one of their victims:
- Always choose an RBI-registered digital lender. You can visit RBI's official website to know the non-banking and banking financial companies listed on their platform.
- If the digital lender is too pushy, the best thing you can do is cancel your transaction with them.
- Before going for a digital lender, make sure that all your online and bank account passwords are effective.
- If you are receiving unsolicited text messages or links from digital lenders, don't entertain them as much as possible.
Other business tech stories we previously wrote:
India's Money View raised over $75 million in a new funding round.
FCC previously fined a robocall company allegedly involved in an auto-warranty scam robocall campaign.
For more news updates about digital lending and other business tech topics, keep your tabs open here at TechTimes.
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