Over 600 illegal lending apps operating in India: Govt

On the corrective action taken by the government against them, MoS Finance said in a written reply in Lok Sabha, MeitY (Ministry of Electronics and Information Technology) has blocked 27 illegal lending apps following the procedure specified in IT (Process and Security). Had given. To block access of information to the public) Rules, 2009.

The minister said that ‘Sachet’, a portal set up by RBI to register complaints, has received around 2,562 complaints against digital lending apps from January 2020 to March 2021.

The major concerns raised in such complaints were the exorbitant interest and fees levied by digital lending apps and issues of harassing customers for loan repayment.

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On the “Sachet” portal, complaints against lending apps promoted by RBI regulated entities are sent to the Registrar of Companies for Registered Entities and the Economic Offenses Wing of the complainant’s State for unincorporated bodies and individuals, Ministry of Corporate Affairs, The minister said.

The minister said that as per the findings of RBI’s working group on digital lending, most of the complaints pertain to lending apps promoted by entities “not regulated by RBI” such as non-banking financial companies, unincorporated bodies and companies other than individuals.

The minister said that on December 23, 2020, the RBI had cautioned the general public not to fall prey to “unethical activities of unauthorized digital lending platforms or mobile apps”. MoS Finance said it urged users to verify the antecedents of the company or the firm offering such loans. The minister said the central bank has issued advisory to the states through their respective law enforcement agencies to monitor such platforms or apps.

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