RBI Finds 600 illegal Money Lending Apps In India

RBI Discovers 600 Unauthorized Loan Offerors

A Working group assigned by the Reserve Bank of India (RBI) to analyze the digital lending structures has pinpointed towards the massive group of 600 illegal money lending apps. These apps have been operating in India since the start of the pandemic as we can think. Because as per RBI ‘Sachet’ a portal introduced by the Reserve Bank of India for registering complaints against the illegal entities that accept deposits, it has recorded 2562 financial fraud complaints. These complaints are made between the period of January 2020 to March 2021.

Department of Supervision RBI

The government has assigned the RBI’s Group of Supervision to deal with such complaints against illegal money lending apps. The group has managed to design a specific mechanism to deal with such references about unauthorized online lending entities in India.

RBI has already warned the public not to fall prey to these unauthorized money lending platforms. Always verify the company background and its legal presence which offers such financial assistance.

Blocking illegal Lending Apps

As specified in the “Information Technology Rule 2009, notified under section 69A of Information Technology Act, 2000, Ministry of Electronics and Information Technology”. 27 illegal loan offering apps were blocked.

On Monday the government informed Lok Sabha that RBI has recorded the complaints of such unauthorized money lending apps.

These complaints are categorized state wise:

• Maharashtra- 572
• Karnataka- 394
• Delhi- 352
• Haryana- 314
• Telangana- 185
• Andhra Pradesh- 144
• Uttar Pradesh- 142
• West Bengal- 138
• Tamil Nadu- 57
• Gujarat- 56

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Lending Apps In India

RBI- India has the largest number of these illegal money lenders and they are all taking the advantage of large number of credit needy users. They will offer you the most lucrative loan offers but with high-interest rates and a troublesome recovery process which they will hide from you. A panel set up by the Central Bank found 1100 digital loan offering entities operating illegally in India.