The Ministry of Electronics and Information Technology (MeitY) has announced plans to block 94 loan apps. Additionally, they have planned to ban 138 betting apps too. The prime reason for this ban is to secure any customer data breach, and those apps are linked to Chinese entities. The government has accused these apps of money laundering and a potential threat to India’s financial security.
The government is exercising its power under Section 69 of the Information Technology (IT) Act, 2000, which allows the government to block or restrict certain websites or apps to protect the interest of; Sovereignty and Integrity of the Nation.
This will be the next move after the ban of 59 Chinese apps, including SHAREit, TikTok, UC Browser, SHEIN, etc., in June ‘2020. According to the rules amended by the RBI last year, lenders are restricted from harassing, blackmailing, or abusing customers in any way.
These apps are reportedly increasing the customer’s credit limit without the proper consent of the customer, providing loans with higher interest rates and fees, harassing customers for payments, etc.
As per CNBC-TV18, Kissht and LazyPay have faced a recent crackdown. However, the founders of Kissht and LazyPay have stated that they are working hard to clarify the situation and will provide an update to customers as soon as possible.
As per the report, the Government has shared the list with the app stores and Internet service providers for further action.
For the update released by CNBC-TV18, check out this article.
The complete list of the apps is not yet published officially. Stay tuned for more updates on this topic to avoid misuse of your financial information and falling victim to these types of apps.