RBI reports 600 Illegal Loan Apps found in store
Nowadays, people are effectively addicted to technology. With the technology, they did not think about freedom of danger to their lives. This remains stood as a great advantage for online fraudulent businesses. With the latest technology, it’s too hard to identify who has to hold fake or trustable patronage. So, Beware of online fraudulent business. Now, the Reserve Bank of India (RBI) board reported that in India, more than 600 illegal loan apps exist in several application stores. In which, approximately 1,100 unique Indian loan apps contain keywords like a loan, instant loan, quick loan, etc.
According to the source, WG reports show that around 1,100 loan applications remained available in India between January 01, 2021, and February 28, 2021. Moreover, those apps appeared in over 80+ app stores.
For the purpose of preventing illegal digital lending activities, the RBI has proposed a new law formulated by the Government of India. This information has included in a report by the RBI Working Group on Digital Lending, which covers financing through online platforms and mobile apps.
“STAY ALERT AT ALL TIMES, ALERT TO ANY OPPORTUNITY FOR REST.”
From January 2020 to March 2021, approximately 2,562 complaints held received against online mortgage apps. Further, the RBI stated that objections upon illegal digital lending apps did not control by the RBI as companies.
So, those entities are designated as Non-Banking Financial Companies, unincorporated bodies, and individual businesses. Moreover, the complaints recorded from Delhi, Haryana, Telangana, Andhra Pradesh, Uttar Pradesh, West Bengal, Tamil Nadu, Gujarat, Maharashtra, and Karnataka.
On January 13, 2021, the RBI established a Working Group (WG). The main aim of WG remains to study digital lending, such as lending through online platforms and mobile apps. Due to the surge in digital lending activity, the WG did form in response to concerns about business conduct and customer protection.
They have now submitted their report. In its report, the RBI has advocated enhancing customer protection. Moreover, it also ensures the safety and solidity of the digital lending system, while encouraging innovation.