RBI Has Found 600 Illegal Lending Apps, Government Blocked 27 Of Them

Around 600 illegal lending apps have been found by a Reserve Bank of India working group, while the government has blocked 27 such apps

RBI Has Found 600 Illegal Lending Apps, Government Blocked 27 Of Them

Government has blocked 27 illegal lending apps

Around 600 illegal lending apps have been found by a Reserve Bank of India (RBI) working group, while the government has blocked 27 such apps.

Interestingly, the RBI working group found these illegal apps during a short span of just two months, i.e. between January 1, 2021 and February 28, 2021.

At the same time though, the RBI received as many as 2,562 complaints against such digital lending apps between January 1, 2020 and March 31, 2021.

The Ministry for Electronics and Information Technology has blocked 27 unlawful loan lending apps under the provisions of Information Technology (Procedure and Safeguards for Blocking for Access of Information for Public) Rules, 2009 notified under section 69A of Information Technology Act, 2000.

Out of the 2,562 complaints received against fraud digital lending apps, the maximum 572 complaints were received from Maharashtra, followed by Karnataka (394), Delhi (352) and Haryana (314).

These complaints have been received on RBI's “Sachet” portal, which was set up by the central bank under the State Level Coordination Committee mechanism for registering complaints by public against such unregistered entities.

As a preventive mechanism, the RBI cautions general public not to fall prey to unscrupulous activities of unauthorised digital lending platforms or mobile apps. It advises people to verify antecedents of companies offering such loans.

States are also issued advisories by the RBI to keep a check on such unauthorised digital lending platforms through their respective law enforcement agencies.

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