The citizens of China are behind these apps, who run their illegal business by making the people of India directors in it. The RBI had recently asked lenders to frame stricter norms for digital lending services following a rise in fraud cases in the digital lending segment.
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In a major campaign against loan and lending apps, the central government has ordered the banning of 138 betting and 94 lending apps linked to China. This action has been taken by the Ministry of Electronics and Information Technology. According to reports, the government started scrutiny of many Chinese apps about six months ago. It was revealed that these apps have personal information of the people of the country.
Many complaints of illegal recovery and harassment of people were received against these apps. These apps give loans of small amount to people and charge huge interest on it. It has been said in the report that behind these apps are the citizens of China, who run their illegal business by making the people of India directors in it. After taking a loan from these apps, when people have trouble paying interest on it, people are harassed with threats like leaking their personal information.
The matter came into limelight after some people in Andhra Pradesh and Telangana committed suicide after taking loans from these apps or losing money on betting apps. States like Uttar Pradesh, Telangana and Odisha had requested the Home Ministry to take action against these apps. Last year, the government launched the Internet search engine Google.
Has been asked to implement strict rules to stop the use of illegal lending apps. The Ministry of Electronics and Information Technology ((MeitY) and the Reserve Bank of India (RBI) had directed Google to crack down on these apps. After rising fraud cases in the digital lending segment, the RBI asked lenders to opt for digital lending services. Told to make strict rules.
Its purpose was to protect the borrowers from forgery. Google has changed its Store Developer Program policy for financial services apps. This includes additional terms and conditions for personal loan apps. To crack down on illegal digital lending platforms, the government and the RBI have asked Google to step up scrutiny and ensure that only loan apps approved by the regulator are available for download on the Google Play Store.