RBI found 600 illegal loan apps, government blocked 27
About 600 illegal loan applications were uncovered by a Reserve Bank of India (RBI) task force, while the government blocked 27 such applications.
Interestingly, the RBI task force found these apps to be illegal over a short period of just two months, i.e. between January 1, 2021 and February 28, 2021.
At the same time, however, the RBI received up to 2,562 complaints against such digital lending apps between January 1, 2020 and March 31, 2021.
The Department of Electronics and Information Technology has blocked 27 illegal loan applications under the provisions of the Information Technology Rules 2009 (Procedure and Safeguards for Blocking Access to Information for the public), notified under section 69A of the Information Technology Act 2000.
Of the 2,562 complaints received against fraudulent digital loan apps, the maximum of 572 complaints were received from Maharashtra, followed by Karnataka (394), Delhi (352) and Haryana (314).
These complaints were received on the RBI’s “Sachet” portal, which was set up by the central bank under the State-level Coordinating Committee mechanism to register complaints from the public against these unregistered entities. .
As a preventative mechanism, the RBI warns the general public not to fall prey to the unscrupulous activities of unauthorized digital lending platforms or mobile apps. He advises people to check the background of companies offering such loans.
States also receive notices from the RBI to monitor these unauthorized digital lending platforms through their respective law enforcement agencies.