Taking a Look at the Potential Postponement of the Banning of Unregulated Lending Activities (BULA) Bill
Proposed legislation aimed at restricting uncontrolled lending appears uncertain for the upcoming monsoon parliamentary session.
In the upcoming monsoon session of India's Parliament, scheduled from July 21 to August 12, 2025, it seems the Banning of Unregulated Lending Activities (BULA) Bill might not see the light of day. Why, you ask? It's all about those never-ending consultations!
Things kicked off back in December 2024, with the Centre floating a draft law to stamp out unauthorized lending businesses. Unsurprisingly, the guilty could face up to ten years of jail time. However, the feedback timeline for the bill was only set till February 2025. Seems like there's still some unfinished business to attend to.
But fear not, dear reader! Once the inter-ministerial discussions are wrapped up, the Cabinet's approval will be hustled through, and the Bill will finally step forward, if all goes well. Mind you, with the consultation process far from wrapped up, the Bill's appearance in the upcoming session remains uncertain.
In this digital age, unregulated loan apps have become a thorn in the side of the government. A list of 442 naughty apps, provided by the RBI through the Ministry of Electronics and Information Technology (Meity), has been handed over to Google. As a result, Google has tossed some 2,200 digital lending apps (DLAs) from its Play Store, cleaning up the platform a bit.
The draft bill also puts forth a novel jurisdiction proposal: if the lender, debtor, or properties are located in multiple states or beyond India's borders, or if the total value of the loan amount could significantly impact the public interest, the case will be handed over to the Central Bureau of Investigation (CBI).
Two years back, the Reserve Bank of India (RBI) issued Digital Lending Guidelines to counter shady practices by regulated entities. With the proposed legislation, they're aiming to set rules for the unregulated ones, too. One of the main complaints in the digital lending sector is that borrowers have no idea who's really lending them the dough. Unregulated entities capitalize on this anonymity, posing as authorized lenders and wreaking havoc on the entire system.
Stay tuned for more updates on the Banning of Unregulated Lending Activities (BULA) Bill. In a world where quick cash comes with its fair share of risks, it's high time we reckoned with those greedy, unregulated wolves in sheep's clothing!
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[1] In the realm of finance and business, it's important to keep track of policy-and-legislation updates related to the Banning of Unregulated Lending Activities (BULA) Bill, as it could impact the general-news and banking sector.
[2] Meanwhile, in the world of investments, recent political decisions have caused a significant stir in the market, with stocks experiencing positive growth as a result.
[3] As for the banking industry, stakeholders and investors are eagerly awaiting the implementation of the BULA Bill, as it may lead to increased regulation and stability within the digital lending sector, potentially reducing risks for consumers.
[4] In the burgeoning field of decentralized finance (DEFi), investors are closely watching developments in the global market, looking for opportunities to diversify and grow their portfolios.
[5] On the other hand, those interested in keeping up-to-date with the latest financial news and market updates can turn to various online platforms and mobile applications, equipping themselves with valuable insights and tools to make informed investment decisions.
