After Chinese apps, the Indian government cracks down on Indian betting and quick loan apps—here’s why
- The Indian government has banned 232 applications over “data storage” issues and “money laundering.”
- Out of 232 apps banned, 138 are betting apps, and 94 are quick-loan apps.
- The banned apps include credit applications such as
The Indian government recently banned 232 betting and loan applications linked to China and other countries, cracking down on gambling and quick loan apps over “improper data storage” and “money laundering” concerns. In addition to Chinese apps, the ban included Indian ‘Buy Now Pay Later’ (BNPL) apps such as LazyPay and Kissht.
Out of the 232 apps banned by the Ministry of Electronics and Information & Technology (MeitY), 138 are betting and gambling apps and 94 are quick-loan-providing apps.
According to a report by Economic Times, the government has said that the apps have been banned as they contain materials “prejudicial” to the sovereignty and integrity of India. “These apps contained material which is prejudicial to sovereignty and integrity of India,” an official familiar with the matter said.
While some of the apps banned have Chinese links, the list also includes Indian applications such as LazyPay and Kissht. Currently, there is no information from the government why apps such as PayU’s LazyPay and Kissht were banned in the country.
Some of the apps banned were involved in predatory lending, wherein such apps offered quick funds to people in emergencies, and subsequently,
Soon after the announcement, LazyPay’s website was blocked, with the notice – “The website has been blocked as per the order of the Ministry of Electronics and Information Technology under the IT Act, 2000.” While the website is now accessible, the company’s app has stopped working.
Customers raise concerns about the app not working
LazyPay customers have taken to social media platforms to complain about LazyPay’s app not working. The company is following a template, asking users to message them about the issue.
One issue that has arisen after the ban on LazyPay is the fate of existing customers. Currently, there is no clarity about the ban and the possibility of the issue being resolved. This has resulted in existing customers being concerned about the money they borrowed from the company.
Business Insider India has reached out to PayU for a comment on the ban on LazyPay and to know the impact on existing customers who have borrowed money from the company. We will update the story after receiving a response from the company.
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