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Government and RBI warned Google on illegal loan apps

Internet search’s top company Google has been asked by the government to implement strict rules to stop the use of illegal lending apps. The Ministry of Electronics and Information Technology (MeitY) and the Reserve Bank of India (RBI) have directed Google to crackdown on these apps. RBI has recently asked lenders to take a call on digital lending after frauds in the digital lending segment increased. Strict rules were asked to be made for the services.

Its purpose was to protect the borrowers from forgery. Google has changed its store developer program policy for financial services apps. This includes additional terms and conditions for personal loan apps. of Reuters Report In order to curb illegal digital lending platforms, the government and RBI have asked Google to increase scrutiny and ensure that only regulator-approved loan apps are available for download on the Google Play Store. Along with this, Google has also been asked to reduce the distribution of these apps through websites and other means of download.

Google has said that it changed its Play Store Developer Program policy for financial services apps from September last year to make additional conditions mandatory for personal loan apps. A company spokesperson said that over 2,000 personal loan apps have been removed from the Play Store in India for violating user safety policies. “We will continue to work closely with law enforcement agencies and industry organizations to address this issue,” he said.

RBI had issued detailed guidelines for digital lending a few weeks ago. Government and RBI are preparing a list of approved lending apps. RBI has also made it mandatory for digital loans to be credited directly to the borrower’s bank account without any third party. One97 Communications, which runs payment services-linked Paytm, has denied any link with Chinese loan merchants. Enforcement Directorate (ED) launched a Chinese loan app the inspection Under this, these merchants have been targeted.

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