Prelims: Current events of national and international importance| Economic and Social Development | Governance
Why in news?
Recently RBI has mandated all Regulated Entities (REs) to report details of their Digital Lending Apps (DLAs) through RBI's Centralised Information Management System (CIMS) portal.
- The Centralised Information Management System (CIMS) – It is a portal designed to collect and manage information about digital lending applications in India.
- Developed by – Reserve Bank of India (RBI)
- Key features of CIMS – It serves as the official reporting platform for Regulated Entities (REs) like banks, NBFC to submit details about their Digital Lending Apps (DLAs).
- It collects standardized information about digital lending applications operating in the Indian financial ecosystem.
- It acts as the central database that will power the public directory of legitimate lending apps.
- The RBI will publish this public directory of DLAs by July 1 on its website.
- The database will update automatically whenever REs adds or remove apps from their submissions.
Significance
- To create enhanced transparency for borrowers in the digital lending sector.
- To establish a verification system for borrowers to identify legitimate lending apps.
- To support RBI's broader regulatory framework for digital lending.
- It will help RBI by improved communication with banks and other regulated companies.
- To bring greater oversight and accountability to the rapidly growing digital lending space in India.
Reference
CNBCTV18| The Centralised Information Management System (CIMS)
