Banning of Unregulated Lending Activities (BULA) Bill
The Banning of Unregulated Lending Activities (BULA) draft bill, introduced by the Indian government, aims to curb unauthorized lending practices following RBI’s recommendations. It defines unregulated lending as loans outside existing regulations, especially from unauthorized digital platforms. The bill imposes strict penalties, including up to 10 years of imprisonment and fines of up to ₹1 crore for violators. The CBI is designated as the investigative authority for multi-state or high-value cases. With rising fraudulent practices and aggressive recovery methods, the government seeks feedback until February 2025 to refine the bill and promote transparency in lending.
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