Anubhutie Singh

On 13 December 2024, the Ministry of Finance, Government of India (MoF) released the draft Banning of Unregulated Lending Activities (BULA) Act. This aligns with recommendations made in the Report of the Working Group on Digital Lending.

This Whitepaper unpacks what RTAI would mean in the context of digital lending. While the term Responsible AI has been adequately conceptualized in academia and elsewhere, it still needs to be coherently contextualized to specific domains.

When AI-driven decisions are fair, respect privacy and are not opaque, they foster customer confidence

The framework should provide adequate compensation to victims, while investigative action continues in tandem

Stakeholders should gather a common set of data points for each complaint, distinct from their data objectives

Positive frictions while authorising transactions will give users some time before approving payment

 Our response covers two themes: Leading from a customer protection perspective, our comments emphasise the need for the prospective SRO to have duties towards the customers, at par with responsibilities towards the regulator.

In this blogpost, we present our comments primarily to the former, but significantly implicating the latter. We include both frameworks since they cover similar subject matter – the creation of an SRO.

This research presents a framework comprising nine principles, which we believe are pre-requisites for creating user-centric GRMs.

MFIN India and Dvara Research partner to gather insights on users’ experience of navigating the MFIN-Customer Grievance Redress Mechanism (MFIN-CGRM). The study deploys mixed methods — a primary survey of over 300 users, stakeholder interviews and desk research to understand the user-centricity of the MFIN-CGRM.