Soon India will Decide which Loan Apps are permitted to App store
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| India will decide which Loan apps are permitted on popular app stores |
The Reserve Bank of India, the country's central bank, will create a "whitelist" of all legal apps, and the country's IT ministry will ensure that only whitelisted apps are hosted on app stores, according to a statement from the Finance Ministry.
According to the Finance Ministry, the central bank will also monitor "mule" or "rented" accounts for money laundering practices and review and cancel licenses of non-banking financial institutions if they are found guilty.
Payment aggregators in the country will be required to register within a certain time frame, and India's Ministry of Corporate Affairs will work to identify and revoke the registrations of shell companies to prevent misuse.
In recent months, Indian authorities have been cracking down on lending apps that charge exorbitant fees and use unethical methods to collect payments. India's central bank announced earlier this month that it was moving forward with new digital lending guidelines that will require firms to provide more disclosure and transparency to benefit consumers while also restricting several business practices.
In recent quarters, a slew of lending apps have sprung up in India, many of which offer loans to customers with no credit and little savings, and then use unethical means to collect their money. Hundreds of arrests have been made in the country as a result of complaints alleging abuse and harassment from agents collecting repayments on behalf of loan applicants.
According to local media reports, some people have committed suicide as a result of the psychological pressure created by the predators behind these platforms. Though the latest move aims to limit the availability of loan apps through app stores — an audacious step, to be sure — several such apps are available outside of app stores. Customers are given these links via text messages and even advertisements.
Frequently Asked Questions About Loan Apps (Lending Apps)
How many Loan apps ban in India?
There are many Loan apps which have been banned but recently Indian Authorities have banned 100 plus Loan apps which have been blocked. The have extorted about 500 crore Frome public.
Legal Loan Apps in India
I have mentioned some Legal Loan apps which is legal in India. You can apply for your loan and they have about 80 % approval rate.
- India Lends
- Navi
- Dhani