We all can do our bit to stop this...

"P Sunil" 28 years took his own life due to harassment from "Online" Lenders.

I was outraged to say the least. I have taken that outrage and hoping that I can write a constructive article on what every institutions (regulatory or otherwise), businesses and individuals can do to not see a repeat of such cases.

Here are my suggestions and let me start with the entrepreneurs first:

• Entrepreneurs in Business of Lending: Every enterprise / business has an economic and social impact. Business of Lending greases all the engines of economy with supply of money - a key ingredients whether for an individual looking to make a purchase of home, car or putting kids through school or a business trying to manage working capital. Self-regulation plays a big part in this business. Self-regulation is common sense - would I like to borrow at this rate? Would I like to be treated like this? Pause and ask "is this right". It is critical as an entrepreneur to balance profit and impact on the society.
• Reserve Bank of India: With all good intent of not stepping on their toes but this "caution notice" is not a strong response from the Regulator. Here is an example of UK FCA regulation from 2016. Beyond this, why do we need these App's (unregulated ones specially) to continue operating. In simple terms "all lending / lease finance/ bill discounting activity without any license from RBI should be dis-allowed."
• Venture Capitalist: "What problem are you solving" - is the first question in 100% of your investment presentations. You have an insider view of your investments. I know you all take regulations seriously and play a crucial part in making sure in its compliance. Please do review whether your invested companies are doing a model which is "not creating a problem rather than solving it".
• App Stores/ Ad platforms: Yes Google and Apple you both have a role to play. Before you put these apps up in your respective store - why can you not ask for regulatory approval / license as part of submission. NOT an app by regulated company - it is NOT on your App stores. Beyond this Facebook & Google both can stop the advertisement of these apps by doing similar due-diligence.
• School / Colleges: In my current start-up Monexo - I deal with borrowers on daily basis - they have no understanding of APR (Annualised Percentage Rate / Diminishing Interest Rate) vs Flat Interest rate. Very few are "financially literate" even though they have a college degree. Colleges across stream should have basic "financial education" as a compulsory subject - it will help the students as they step in the economic world by themselves.

Let us start a debate and build consensus to act across with regulations, self-regulation, education and awareness. Please feel free to build on these ideas - we all can do our part to "STOP" this.

For God sake we are in 2020 and not 1900's....