DLAI Names Former RBI ED & MFin CEO As Independent Directors
On 27 November, the Digital Lenders Association of India (DLAI) appointed Meena Hemachandra, former executive director of the Reserve Bank of India (RBI) and Alok Prasad, former CEO of MFin, as Independent Directors to its board.
DLAI, an industry body representing over 90 digital lending firms in India, was established in 2016 by digital lending firms to foster responsible and inclusive growth in the sector. The appointment of these seasoned banking and financial sector professionals is expected to enhance DLAI's digital lending practices, as mentioned in a press release.
The burgeoning fintech and digital lending industry is on track to establish a self-regulatory organisation (SRO) in the next 3-6 months. An SRO, a non-governmental organisation, sets monitoring standards for industry players and acts as a liaison between the industry and regulators.
Discussions are ongoing with the RBI for the formulation of an SRO, with DLAI and the Fintech Association for Consumer Empowerment (FACE) engaged in these conversations. RBI Governor Shaktikanta Das, on 6 September, encouraged fintechs to establish an SRO within the next year to address issues like cyber risks, data security and concerns related to illegal loan apps.
