The Reserve Bank of India (RBI) had formed a digital lending task force (WG) on January 13, which has now called 600 applications “illegal lending applications.” The working group studied all aspects of digital lending activities in the regulated financial sector as well as the unregulated sector to come to this conclusion. The report added that most of these apps are used to trick unsuspecting people and are available on several app stores for Android users in the country. Also Read – Google Fit Now Lets You Measure Heart Rate And Respiration Rate Using Your iPhone Camera
According to the task force report, there are around 1,100 loaner apps available for Android users in India in more than 80 app stores. The report includes data from January 1 to February 28. Also Read – Microsoft Withdraws In-Person Presence At CES 2022 Amid Covid Concerns
“Number of App Stores in which Indian loan apps are available (81), number of unique Indian loan apps containing keywords: loan, instant loan, fast loan, etc. (1,100), number of illegal loan applications (600), ”the report adds. Also Read – How To Transfer All Your Passwords From Apple To Android
Some of the concerns raised by the WG are as follows:
- Insufficient transparency of information collected from users and how it will be used.
- No possibility for users to manage and / or delete their personal data once the loan has been repaid.
- Most apps do not disclose their partner banks or non-bank financial company (NBFC) partners.
- Businesses use debt collectors who take advantage of borrowers’ phone contacts, photos, or other sensitive data to harass them.
The task force was created because RBI has received an increasing number of complaints from the public against digital lending applications on its Sachet portal, where the public can register their complaints. It said it received around 2,562 complaints between January 2020 and March 2021. Of these, the majority of complaints were about loan applications promoted by entities not regulated by RBI. Most of these complaints were received from Maharashtra, followed by Karnataka, Delhi, Haryana, Telangana, Andhra Pradesh, Uttar Pradesh, West Bengal, Tamil Nadu and Gujarat.