RBI founds 600 illegal digital lending apps

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES

LOK SABHA
UNSTARRED QUESTION NO.4113
To be answered on the 28th March 2022/Chaitra 7, 1944 (Saka)
Illegal Digital Lending Apps

41 13.SHRI MANISH TEWARI:

SHRI VENKATESH NETHA BORLAKUNTA:

DR. G. RANJITH REDDY:

DR. MANOJ RAJORIA:

SHRI PASUNOORI DAYAKAR:

Will the Minister of FINANCE be pleased to state:

(a) whether the Reserve Bank of India (RBI) has found 600 illegal digital lending apps operating and duping innocent people in the country;

(b) if so, whether thousands of complaints have been received against the said apps between January 2020 and March, 2021;

(c) if so, the details thereof, State-wise including Telangana;

(d) whether the Government has taken congnizance of the aforesaid facts and initiated any legal action against such illegal entities/apps; and

(e) if so, the details thereof and if not, the reasons therefor?

ANSWER

THE MINISTER OF STATE FOR FINANCE (DR. BHAGWAT KARAD)

(a) to (c): As per the findings of RBI’s Working Group on digital lending, the number of illegal lending apps stood at approximately 600 from 1.1.2021 to 28.2.2021. As per RBI, “Sachet”, a portal established by RBI under State Level Coordination Committee mechanism for registering complaints by public against unregistered entities has received approximately 2,562 complaints against digital lending apps from 1.1.2020 to 31.3.2021. Details of these complaints state-wise including Telangana is at Annex.

(d) and (e): The Department of Supervision, RBI has been designated as the nodal department for dealing with complaints against unauthorised digital lending platforms/Mobile Apps and a mechanism to handle specific references on unauthorised digital lending platforms/ Mobile Apps has been laid down. Further, vide press release dated 23.12.2020, RBI had cautioned the general public not to fall prey to unscrupulous activities of unauthorised digital lending platforms/Mobile Apps and verify the antecedents of the company/ firm offering such loans. RBI has also issued advisories to State Governments to keep a check on unauthorised digital lending platforms/Mobile Apps through their respective law enforcement agencies. Further, following the due process specified in Information Technology (Procedure and Safeguards for Blocking for Access of Information for Public) Rules, 2009 notified under section 69A of Information Technology Act, 2000, Ministry of Electronics and Information Technology blocked 27 unlawful loan lending apps.

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Annex

Lok Sabha Unstarred Question no. 4113 for 28.3.2022 regarding
“Illegal Digital Lending Apps”

State wise number of complaints received since January 2020 to
March 2021

Source: RBI

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