SUMMARY
The crackdown was based on leads and inputs received
The primary reasons behind the ban were—violation of norms, misrepresentation of information and questionable offline behaviour
The loan app problem has peaked, Google official said
Google removed over 2,000 loan apps from India play store since January. The primary reasons behind the ban were — violation of norms, misrepresentation of information and questionable offline behaviour, as per a PTI report.
Moreover, Google is also looking at stricter policies for greater checks in the space, Saikat Mitra, Senior Director and Head of Trust and Safety, Google APAC (Asia Pacific region) said.
Terming online harm as a ‘global phenomenon’, Mitra said the tech giant is committed to complying with regulations in all jurisdictions it operates in.
When it comes to loan apps, the crackdown was based on leads and inputs received, Mitra said. He also acknowledged that the loan app problem has peaked.
However, the problem may subside as it is getting more focus and attention lately, he added.
As the tech major is in the process of few more policy changes that are expected to come out in a few weeks, this move will make it more explicit on requirements for such apps.
Mitra also noted that the nature of loan app problems is different in different markets. For example, the US market has a problem of predatory loans. On the other hand, in India it is a combination of misrepresentation, non-compliance with policies and regulations, and improper offline behaviour of such apps on recovery and other actions.
While loan apps in India also get into offline things for which the company does not have visibility, it gets inputs from law enforcement agencies, he noted.
Considerably, earlier this week, in a money laundering probe into 365 loan apps and their non-banking financial companies (NBFCs) partners, the Enforcement Directorate (ED) reportedly found more than INR 800 Cr as proceeds of crime.
The Indian government is also taking action against dubious digital loan apps, Finance Minister Nirmala Sitharaman informed Rajya Sabha earlier this month .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.
