Business Business Stories Fintech Interviews Technology

Only RBI-approved loan apps will be available in app stores

The Ministry of Electronics and Information Technology (MeitY) alongside the Reserve Bank of India (RBI), has been entrusted to guarantee that only the whitelisted loan applications are accessible for download on the Google Play Store and the Apple App Store.

At the September 8 gathering, Union Finance Minister Nirmala Sitharaman guided the RBI to make a whitelist of loan applications by assessing and approving the applications that follow the digital lending rules delivered the month before.

In August, Google noticed that it has eliminated in excess of 2,000 loan applications from its Play Store since January 2022. It is most likely the case that more will go with the same pattern after the RBI distributes its whitelist.

Aside from the whitelist, the RBI has been charged with ensuring that the ‘mule/rented’ accounts are not utilized for tax evasion and reviewing or cancelling dormant non-banking financial institutions (NBFCs) to keep away from their misuse.

New Delhi has been forcefully stifling the danger presented by the unlawful loan applications that have been uncontrolled, especially in Tier-2+ urban areas of the nation where financial education is still lacking.

These unlawful loan applications target low-earning groups, offering them credit extensions at excessive interest rates and high handling charges. Further, these applications utilize savage recuperation techniques including criminal terrorizing and blackmail.

English »