Nowadays, there are numerous fake apps circulating for loan distribution, leading to people being deceived under the guise of loan offers. Several cases of such scams have surfaced, prompting the RBI to take stringent action. Consequently, loan apps on the Google Play Store will undergo thorough scrutiny. To facilitate this process, the RBI is establishing the Digital India Trust Agency (DIGITA).
The incidence of fraud in loan apps is expected to decrease soon as the RBI has cracked down on such applications. Henceforth, only those loan apps approved by the RBI will be accessible on the Google Play Store. Recently, there has been a surge in the number of loan disbursal apps, with many of them originating from China. These apps have been found to illicitly gather users’ personal information, resorting to blackmail tactics. Additionally, they arbitrarily hike interest rates, exerting undue pressure on users when they fail to repay the borrowed amount. However, there is now no need for concern, as the RBI is actively combating such fraudulent loan apps.