Alphabet Inc’s Google has removed some lending apps targeted at buyers in India from Play Store in an try to safeguard customers, it mentioned in a weblog post on Thursday.
“We have reviewed hundreds of personal loan apps in India, based on flags submitted by users and government agencies,” Suzanne Frey, Vice President, Product, Android Security and Privacy mentioned in the post.
A current investigation by Reuters discovered at least 10 lending apps on Play Store breached Google’s guidelines on loan repayment lengths aimed at defending vulnerable borrowers. It also discovered that a quantity of the lending apps also violated central bank regulations made to safeguard borrowers.
Google did not elaborate on the quantity of apps that had been taken down.
Google has contacted businesses and asked them to clarify if they are compliant with the guidelines and regulations, failing which an app could be removed from the Play Store.
“We ask you to confirm within five days of this mail whether you hold valid existing approvals or licences from the Reserve Bank of India to act as a NBFC (Non-Banking Financial Company) or are registered under any applicable state legislation to offer such services or are offering services on your app as a designated agent of a registered NBFC/Bank,” mentioned the e mail, a copy of which has been observed by Reuters.
“If we do not receive this confirmation from you within 5 days of this mail, your app may be removed from Google Play.”
The on-line lending sector has come to the interest of the authorities just after at least two suicides in the previous month linked to alleged harassment by recovery agents of such apps.
The Reuters critique of 50 preferred lending apps accessible also discovered practically all essential borrowers to give them permission to access their telephone contacts which customers allege are utilised by recovery agents in the case of defaults or late payments.
Google mentioned developers need to only access permissions that are needed to implement existing capabilities and services.
“They should not use permissions that give access to user or device data for undisclosed, unimplemented, or disallowed features or purposes,” Google mentioned in its post.
It mentioned it would make certain apps complied with neighborhood laws and regulations. “Apps that fail to do so will be removed without further notice,” it mentioned.
On Wednesday, the central bank formed a working group to appear into digital lending practices. The panel has been tasked with identifying dangers posed by unregulated digital lending to monetary stability, regulated entities and buyers and is anticipated to submit the report inside 3 months.