NEW DELHI: Days after banning 94 loan apps, the Ministry of Electronics and Information Technology (MEITY) on Thursday said there are discrepancies in these apps thus the government had to take this decision.
However, the ministry has given these apps 48 hours time to prove their genuineness. “There is a standard procedure... they were given opportunity to present their details, in case they have anything… on this basis the decision (to ban apps) was taken,” said a MEITY official.
In a fresh crackdown last week, the ministry initiated a process to block about 138 betting and 94 loan apps with Chinese and India links. Apps like Fintech firms LazyPay, IndiaBulls Home Loans, Kissht have India link. Subsequently, the government said if they find their paper genuine, these apps will be removed from the list.
“Depending on what documents they submit..if they are genuine then the decision will be overturned,” said the official. Lately, loan apps have come under the scanner of the government and law enforcement agencies. The government, in Parliament, said the RBI issued advisories to state governments to check unauthorised digital lending platforms and mobile apps through their law enforcement agencies.
This move comes after the rise of loan app scams in India. Their modus operandi is the deduction of processing fees from loan, combined with penalties, and at significantly higher interest rates in cases of delay in payments.
At many instances, they send them lewd messages, threatening to release their morphed photos and shaming them with messages to their contacts. The government said these apps, often displaying predatory behaviour to trap individuals in massive debt, can be misused as tools for espionage and propaganda, besides posing a security risk to the data of the Indian citizens.
Govt blocked 138 betting and 94 loan apps
In a fresh crackdown last week, the ministry initiated a process to block about 138 betting and 94 loan apps with Chinese and India links. Apps like Fintech firms LazyPay, IndiaBulls Home Loans, Kissht have India link