Govt Taking Action Against Dubious Digital Loan Apps: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman said that the Indian government is taking action against dubious digital loan apps. The government is taking action against loan apps that are originating from outside the country, as well as Indians who helped in setting them up, she informed Rajya Sabha.

She also added that most of the dubious apps are originating from one particular country, as per a PTI report. Hence, a lot of borrowers are facing harassment, while  money is being extorted by these apps.

As the government is scaling up its efforts against such apps, several departments such as the Ministry of Finance, Corporate Affairs, Ministry of Electronics and Information Technology, among others are coming together to discuss and chart a course for these cases.

The FM also cited the example of Telangana where a lot of people suffered such harassment a couple of months ago. While action has been initiated for that case, the government is also planning to take action across the country. 

Along with taking action against Indian citizens who have also helped in establishing these companies, it is also keeping an eye on shell companies through which they are operating.

It must be noted that the Reserve Bank Of India (RBI) governor Shaktikanta Das said that the central bank would bring guidelines to regulate digital lending soon.

“It has taken more time than we had initially presumed, but the situation is so complex, you know, we are being very careful and very cautious. On one hand, we have to support innovation, on the other, we have to maintain financial stability,” Das said.

In 2021, the RBI had constituted a committee to form a draft report on digital lending, including lending via online platforms and mobile apps.