Uganda, March 27 -- Online money lenders are now currently banned from charging the defaulting customer interest that exceeds 50 per cent of the total amount of borrowed they lent the latter, according to new digital guidelines launched by Uganda Microfinance Regulatory Authority (UMRA).

Unveiled in September last year, the Digital Lending Guidelines were last week officially launched by UMRA at an event attended by a section of online money lenders and officials from Bank of Uganda and government.

The 25 guidelines summarize how the online lenders should conduct business and interact with customers in a legally acceptable manner.

Digital or online lenders are "supposed to be fully licensed by UMRA as their regulator, have a physically...