Sitharaman Discusses Measures to Ban Illegal Loan Apps, Strict Measures Will Be Implemented

New Delhi, Sep 09 (PTI) Finance Minister Nirmala Sitharaman discussed various issues related to loan apps operating illegally without registration. It also decided to implement several measures to verify these apps amid rising cases of digital fraud.

Most digital lending apps are not registered with the central bank and operate on their own. Suicides among borrowers are also on the rise due to alleged harassment by some digital lending app operators.

In a meeting chaired by the Minister of Finance on Thursday, it was decided that the RBI would prepare a list of all legal applications. In addition, the Ministry of Electronics and Information Technology (MeitY) will ensure that only these are “hosted” on the App Store.

RBI will monitor these accounts which may be used for money laundering. In addition, dormant NBFCs (non-bank financial companies) will be scrutinized for abuse.

The central bank will also ensure that the registration of payment ‘aggregators’ is completed within a specified period and no unregistered payment ‘aggregators’ will be allowed to operate after that, the finance ministry said in a statement on Friday. .

To control the proliferation of these apps, the Ministry of Corporate Affairs (MCA) will identify front companies and deregister them to prevent their misuse.

In addition, steps will be taken to increase cyber awareness among customers, bank employees, law enforcement and others affected by these applications.

During the meeting, Sitharaman expressed concern over the rise in cases of illegal loan apps offering loans with high interest rates and hidden fees, especially to vulnerable and low-income groups.

Several senior officials including the Finance Secretary, Economic Affairs Secretary, Revenue Secretary, MeitY Secretary and RBI Deputy Governor attended the meeting.


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