A working group of the Reserve Bank of India (RBI) discovered 600 unlawful lending applications, while the government blacklisted 27 of them.
Surprisingly, the RBI working group discovered these unauthorised apps in just two months, between January 1, 2021, and February 28, 2021.
However, between January 1, 2020, and March 31, 2021, the RBI received 2,562 complaints about such digital lending apps.
The Ministry of Electronics and Information Technology has blocked 27 illegal loan lending apps in accordance with the provisions of the Information Technology (Procedure and Safeguards for Blocking for Public Access to Information) Rules, 2009, as notified under Section 69A of the Information Technology Act, 2000.
Out of the 2,562 complaints received against fraudulent digital lending applications, Maharashtra received the most (572), followed by Karnataka (394), Delhi (352) and Haryana (314)
These complaints were received on the RBI’s “Sachet” portal, which was established by the central bank as part of the State Level Coordination Committee procedure for recording public complaints against such unregistered organisations.
As a precautionary measure, the RBI warns the general public not to fall victim to the unethical actions of unlicensed digital lending platforms or mobile applications. It recommends that individuals check the backgrounds of firms that provide such loans.
The RBI also issues warnings to states to help them keep an eye on such unlicensed digital lending platforms through their local law enforcement organisations.