Following the ban on more than 250 apps of Chinese origin ranging across categories such as social network, gaming, e-commerce, news, organization, photo and video editing, and more, the government of India has now come down heavily on lending or loan apps supplying immediate credit more than the online. The Ministry of Electronics and Information Technology (MeitY) had received a request from the Ministry of Home Affairs for blocking 27 loan lending apps and soon after due approach, MeitY blocked these 27 apps beneath Section 69A of the Information Technology Act, 2000. The info was shared by MoS Finance Ministry Anurag Singh Thakur in the Lok Sabha earlier this week. However, the names of the blocked loan apps weren’t shared in his reply. The info was shared by the MoS in response to a query on no matter if the government, massive technologies organizations, and regulated digital lenders are jointly hunting for a crackdown on fraud Chinese lending apps operating in India.
The Reserve Bank of India in a circular dated June 24, 2020, reiterated to banks and NBFCs to disclose names of digital lending platforms engaged as agents on the web-site even though lending platforms had been essential to disclose upfront the name of the lending institution on whose behalf they are lending. Further, a press release was also issued on December 23, 2020, cautioning folks against unauthorised digital lending platforms with an appeal to confirm the antecedents of the service provider. The central bank had also constituted a Working Group on January 13, 2021, to study all elements of digital lending activities like lending by means of on the web platforms and mobile apps by RBI regulated and unregulated entities. The group had to also come out with suggestions pertaining to regulatory and consumer protection measures.
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In December 2020, Hyderabad police had arrested 11 persons from Delhi, Gurgaon even though the Cyberabad police arrested six other people in Hyderabad in immediate mobile app loan fraud. Likewise, in January this year, Telangana police had arrested a Chinese national HE Jian alias Mark, a native of Jiangxi in China in connection with a probe into the immediate on the web loan apps case. India’s digital lending industry has noticed important development more than the years.
Moreover, from December 2020 till January 20, 2021, Google had also removed about one hundred dollars lending apps that had been “possibly not in compliance with the applicable legal and regulatory framework.” The info was shared by the Minister of State for Electronics and IT Sanjay Dhotre stated in a written reply to the Lok Sabha in February. The digital lending worth had jumped from $33 billion in FY15 to $150 billion in FY20 and is most likely to develop to the $350-billion mark by FY23, according to Statista. Among the top players in the industry contain Capital Float, Zest Money, Indifi, KredX, BharatPe, Lendingkart, Paisabazaar, and more. The digital lending worth had jumped from $33 billion in FY15 to $150 billion in FY20 and is most likely to develop to the $350-billion mark by FY23, according to Statista. Among the top players in the industry contain Capital Float, Zest Money, Indifi, KredX, BharatPe, Lendingkart, Paisabazaar, and more.