Over 600 illegal lending apps running; 27 blocked

Major concerns raised in such complaints were issues of exorbitant interest and charges levied by digital lending apps, and the harassment of customers for loan repayments.
For representational purposes (File Photo | AFP)
For representational purposes (File Photo | AFP)

NEW DELHI: The Centre on Monday said that there are over 600 illegal lending apps are operating in the country and are also available on app stores, however the Ministry of Electronics and Information Technology has managed to block just 27 out of it.

In a written reply in the Lok Sabha, Bhagwat Karad, minister of state for finance, admitted, “As per the findings of the Reserve Bank of India (RBI)’s working group (WG) on digital lending, the number of illegal lending apps stood at approximately 600 from 1st January to 28 February 2021 and a number of these apps are available on app stores in the country”.

The minister said ‘Sachet’, a portal established by the RBI for registering complaints has received around 2,562 complaints against digital lending apps from Jan ‘20 to Mar ‘21.

“Following the due process specified in Information Technology (Procedure and Safeguards for Blocking for Access of Information for Public) Rules, 2009 notified under section 69A of Information Technology Act, 2000, MeitY blocked 27 unlawful loan lending apps,” the minister of state added.

Major concerns raised in such complaints were issues of exorbitant interest and charges levied by digital lending apps, and the harassment of customers for loan repayments.

“The WG has taken cognisance of small ticket loans being given through digital lending applications, often at high/exorbitant interest rates,” Karad said. The RBI has issued advisories to states to keep a check on such apps.

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