Acting against dodgy digital lending apps, says FM Nirmala Sitharaman

The government is taking action against dodgy digital loan apps, including those from outside the country, as well as the Indians who helped set them up, Finance Minister Nirmala Sitharaman told Rajya Sabha on Tuesday.

Most dodgy apps come from a particular country and as a result many borrowers are harassed and money is extorted through these apps, she said during Question Time while answering a additional question.

The minister was asked about reports of dodgy digital lending apps backed by Chinese entities that do not follow RBI lending guidelines.

Sitharaman said the Ministry of Finance, Corporate Affairs, Ministry of Electronics and Information Technology and a few other departments including Home are constantly discussing and working to ensure action is taken in these areas. case.

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“Just a few months ago, especially in Telangana state, many people were harassed and action was taken. That does not mean we are not taking action elsewhere,” she said. .

She also said that the government is consciously taking action against Indian citizens who also contributed to the establishment of these companies and also what can be broadly defined as shell companies through which they operate.

Measures are therefore being taken from all these angles, she added.

Reserve Bank of India (RBI) Governor Shaktikanta Das had recently said that the central bank would soon come up with a regulatory architecture for digital lending platforms.

Most digital lending apps are not registered with the central bank and work on their own. There have been increasing cases of alleged borrower suicides due to harassment by a few of the digital lending app operators.

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