2,562 complaints against illegal digital lending apps till March '21: Govt

Reserve Bank of India’s (RBI) portal to register complaints against illegal digital lending apps has received around 2,562 complaints from January 2020 to March 2021, Minister of State for Finance Dr Bhagwat Karad told the Lok Sabha.

He told the lower house, “As per RBI, “Sachet”, a portal established by RBI under State Level Coordination Committee mechanism for registering complaints by public against unregistered entities has received approximately 2,562 complaints against digital lending apps from January 1, 2020 to March 31, 2021.”

He added that the Ministry has designated central bank’s department of supervision as the nodal department for dealing with complaints on unauthorised digital lending platforms/ mobile apps. A mechanism to handle specific references on unauthorised digital lending platforms/mobile apps has also been laid down.

Dr Karad mentioned that the RBI has issued several notifications warning customers to not fall prey to unauthorised online lending platforms/mobile apps, while adding that users should verify the antecedents of the company offering such loans. The central bank has also advised state governments to monitor illegal digital lending platforms/mobile apps through respective agencies.

Towards the end of his Lok Sabha address, he also noted that the Ministry of Electronics and Information Technology blocked 27 unlawful lending apps in keeping with the relevant provisions of the Information Technology (Procedure and Safeguards for Blocking for Access of Information for Public) Rules, 2009 notified under section 69A of Information Technology Act, 2000.