The Securities and Exchange Commission (SECP) has banned digital lending companies from deducting up-front charges. Digital lending companies are formally notified of the new regulatory requirements through an online session.
Regulations by the SECP to prevent mis-selling, and protect customer data and redressal complaints, have been implemented. The senior management of all licensed non-banking finance companies attended an online session organized by SECP to review the important points of Circular 15.
Moreover, digital lending companies are restricted from running multiple digital apps on Google Play Store or any other platform. However, different products and schemes can be launched under one master app. The companies have been directed to identify a master app each and shut down the rest within 90 days.
