SUMMARY
While the policy has been updated on September 5, 2022, the deadline to implement it has been set for September 19, 2022
If the apps fail to comply with the new rules within the given timeline, Google will delist those apps from Play Store
The decision comes at a time after Google has been called to multiple meetings lately conducted by the government and the RBI on the issue
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Amid controversies around loan apps, tech giant Google has updated its policy for direct loan disbursal apps and credit aggregators on the Google Play Store in India to prominently display a link to the partner bank or non-banking finance company (NBFC).
While the policy has been updated on September 5, 2022, the deadline to implement it has been set for September 19, 2022. If the apps fail to comply with the new rules within the given timeline, Google will delist those apps from Play Store, ET reported.
“For apps that remain non-compliant with the requirements past the deadline provided, as is done for any policy non-compliance, we have been taking necessary enforcement action as part of our ongoing policy compliance sweeps, including removal of apps from the Play Store,” a Google spokesperson said as quoted in the report.
The decision comes at a time when the government and the RBI have been in talks with the search giant on the issue. Google was also reportedly directed to introduce tougher checks and balances to eliminate unauthorised digital lending apps.
Following the growing incidents of predatory recovery practices used by digital lending apps and as well as high-interest rate, RBI has stepped up checks and balances against such apps.
It is pertinent to note that Finance Minister Nirmala Sitharaman recently directed the RBI and the Ministry of Electronics and Information Technology (MeitY) to ensure that only whitelisted loan apps are available on the app marketplaces, Google Play Store and the Apple App Store.
The government’s approach is currently developing a comprehensive framework that will have measures within which loan apps can operate, rather than introducing a blanket ban, a senior ministry official said as quoted in the report.
India’s total addressable fintech market is expected to be $1.3 Tn mark by 2025 with compound annual growth rate of 31% during 2021-2025, according to an Inc42 report. Within this sector, the lendingtech segment is expected to account for 47% or $616 Bn of the total market opportunity.
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