In relief to digital lenders, govt revokes ban on many loan apps
However, many Indian apps including digital lenders Kissht, LazyPay, Buddy Loan, Faircent, and CashTM fell into the banned list.
Published: 11th February 2023 08:59 AM | Last Updated: 11th February 2023 08:59 AM | A+A A-
Image used for representational purpose only. (Photo | EPS)
NEW DELHI: In a relief to digital lending apps, the Ministry of Electronics and Information Technology (MeitY) has decided to revoke the ban orders after reviewing their apps and conducting meetings.
As per the reports, MeitY officials will inform the app hosting platforms like Google to revoke the ban and let the apps run as usual. The government on February 6, 2022, decided to ban 138 betting and 94 loan lending apps with Chinese links.
However, many Indian apps including digital lenders Kissht, LazyPay, Buddy Loan, Faircent, and CashTM fell into the banned list. The blocking orders were given under Sec 69A of the Information Technology Act 2000 on an ‘urgent’ and ‘emergency’ basis. A MeitY official had on Thursday said the government has given these apps 48 hours to prove their genuineness. “Depending on what documents they will submit..if they are genuine, then the decision will be overturned,” said the official.
It is believed MeitY officials met with these digital lenders and found out their papers were genuine. KreditBee and Rupeedee have received notification for revocation on Aptoide platforms. Loan apps have come under the scanner of government and law enforcement agencies.
The government, in Parliament, said the RBI issued advisories to state governments to check unauthorised digital lending platforms and mobile apps via their agencies. This move comes after the rise of loan app scams. It said these apps, often displaying predatory behaviour to trap individuals in massive debt, can be misused as tools for espionage and propaganda.
