SECP cautions digital lending NBFCs of regulatory action

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The SECP has cautioned digital lending NBFCs of regulatory intervention, if full disclosure and fair business practices are not ensured by the industry.

The SECP called a zoom meeting of the chief executives of NBFCs engaged in digital lending to discuss recent media reports about exorbitant interest rates, inadequate disclosures, and coercive collection practices, purportedly being resorted to by lending platforms, said a press release issued by SECP here on Wednesday. The lenders were informed that SECP does not want to stifle this nascent industry with excessive regulatory burden, but would expect the industry to itself practice caution and develop standards that protect borrowers through adequate disclosure.—APP

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