Parl Panel Quizzes Razorpay, PhonePe & CRED Execs Over Rising Cyber Incidents

Parl Panel Quizzes Razorpay, PhonePe & CRED Execs Over Rising Cyber Incidents

SUMMARY

The panel sought views of fintech players on various trends in the field of cyber security and measures that could be taken to address such issues

The meeting also saw a debate on the issue of illegal lending apps operating in the country

Illegal lending apps are in the dock for allegedly harassing customers and charging exorbitant interest rates from users

A Parliamentary panel reportedly quizzed executives of startups and other stakeholders on the rising incidents of cyber crimes in the country.

Representatives of fintech giants such as Razorpay, PhonePe and CRED as well as quantum computing startup QNu Labs deposed before the Parliamentary Standing Committee on Finance on the issue of ‘cyber security and rising incidence of cyber/white collar crimes. Besides, industry body NASSCOM was also part of the deliberations. 

Sources told news agency PTI that the committee sought views of attendees on various trends in the field of cyber security and measures that could be taken to address related issues. The panel members also raised the matter of illegal lending apps during the discussion.

Headed by BJP member of Parliament (MP) Jayant Sinha, the committee also counts Congress MP P Chidambaram, TMC MP Sougata Roy and BJP Rajya Sabha member Amar Patnaik as its members. 

This comes at a time when issues related to illegal lending apps have grabbed headlines across the country. At the centre of the row are Chinese lending apps that allegedly operate without oversight and charge exorbitant rates of interest from victims.

In many cases, these loan sharks have harassed victims to the extent that many have attempted or resorted to death by suicide. As cases began to pile up last year, this prompted renewed government scrutiny as the finance ministry, along with the Reserve Bank of India (RBI) began instituting rules to curb the usage of such apps. 

Earlier this year, the Ministry of Electronics and Information Technology (MeitY) banned more than 90 lending apps from app marketplaces as part of its larger crackdown on Chinese-linked apps. 

Late last year, it was reported that the RBI was working with several central ministries to tighten the noose around illegal Chinese loan apps. The RBI also reportedly shared a whitelist of loan apps with stakeholders that could be listed on app marketplaces. Not just this, the central bank also issued digital lending guidelines, which sought to curb harassment of people availing credit online by digital loan sharks. 

ED has also ramped up its crackdown on digital lending apps and has frozen crores of rupees as proceeds of crime in multiple cases involving Chinese entities. However, the spate of suicides involving such apps continues unabated. 

Earlier last week, a 22-year-old man in Andhra Pradesh’s Bapatla died by suicide after being harassed by loan app operators. In February, an 18-year-old died by suicide due to a similar incident. 

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Parl Panel Quizzes Razorpay, PhonePe & CRED Execs Over Rising Cyber Incidents-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Parl Panel Quizzes Razorpay, PhonePe & CRED Execs Over Rising Cyber Incidents-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Parl Panel Quizzes Razorpay, PhonePe & CRED Execs Over Rising Cyber Incidents-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Parl Panel Quizzes Razorpay, PhonePe & CRED Execs Over Rising Cyber Incidents-Inc42 Media
Parl Panel Quizzes Razorpay, PhonePe & CRED Execs Over Rising Cyber Incidents-Inc42 Media
You’re in Good company