Dar es Salaam, Feb. 19 -- TANZANIA: BANK of Tanzania (BoT) has said it is working on a mechanism aimed at regulating the proliferation of online lending business.

The BoTs Senior Principal Banking Examiner Deogratius Mnyamani said recently that there is mushrooming of unregistered online lending businesses operating illegally on various digital media platforms.

“We are currently working on regulations to ensure that online lending businesses operate legally and smoothly. “What we are doing now is to sensitise online lending service providers to comply with the law and register their business,” he said.

The Microfinance Act requires online lenders to register their businesses which will help to identify them and borrow...