They are available on several app stores for Android users, the study said.
The Working Group (WG) of the Reserve Bank of India (RBI) on digital lending, including lending through online platforms and mobile apps, has stumbled upon over 600 illegal loan apps operating in India.
WG said in a report that these apps, mostly used to dupe unknown people, are available on several app stores for Android users in the country.
In the course of its filed work to prepare a detailed report on digital lending and suggest recommendations, WG explored the existence of over 1,100 unique loan apps that can be searched through keywords such as loans, instant loans and instant loans. could.
These apps were available on 81 app stores from January 01, 2021 to February 28, 2021.
Growing complaints
The RBI panel pointed out that the number of complaints against digital lending apps to Sachet, a portal set up by the Reserve Bank under the State Level Coordination Committee (SLCC) mechanism to register complaints by the public, is increasing significantly.
Around 2,562 complaints were received from January 2020 to March 2021.
“Most of the complaints pertain to lending apps promoted by RBI regulated entities such as NBFCs (Non-Banking Financial Company), unincorporated bodies and companies other than individuals,” the report said.
Another significant chunk of complaints pertain to lending apps partnering with NBFCs, especially smaller ones (with asset size of less than ₹1000 crore, it noted.
Most complaints were received from Maharashtra, followed by Karnataka, Delhi, Haryana, Telangana, Andhra Pradesh, Uttar Pradesh, West Bengal, Tamil Nadu and Gujarat.
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