Google says it has removed several loan apps in India after RBI takes steps to curb fraud in digital lending
loan appsin India and has also removed many of them, which have violated user safety guidelines.
- Google’s crackdown on lending apps in India comes after the Reserve Bank of India announced that it was forming a working group to regulate
- Among many other regulatory steps, the group will also set up a Fair Practices Code and “recommend measures for robust data governance, data privacy and data security standards” in the digital lending sector.
“We have asked the developers of the remaining identified apps to demonstrate that they comply with applicable local laws and regulations. Apps that fail to do so will be removed without further notice. In addition, we will continue to assist the law enforcement agencies in their investigation of this issue,” said Google in its blog.
Here’s the information that financial apps have to share with Google
- minimum and maximum periods of repayment
- the maximum Annual Percentage Rate,
- and a representative example of the total loan cost.
Google’s crackdown on lending apps in India comes after the Reserve Bank of India announced that it was forming a working group to regulate digital lending.
The group will study the scope of digital lending in India, identify risks in the sector “posed by unregulated digital lending” and also suggest regulatory measures if needed. Additionally, the group will also set up a Fair Practices Code and “recommend measures for robust data governance, data privacy and data security standards for deployment of digital lending services.”
Google, in its statement, also said that it was placing focus on user’s privacy. “Developers must also only use data for purposes that the user has consented to, and if they later want to use the data for other purposes, they must obtain user permission for the additional uses,” said the tech giant.
The group consisting of four top members of the Reserve Bank of India and two external members from a fintech firm and a cybersecurity firm will submit their observations of the digital lending sector within three months.
The RBI said that the recent spurt in online lending apps pose serious concerns.
AdvertisementWith the coronavirus pandemic, people have been turning more and more to digital apps which offer hassle-free instant loans. However, reports have surfaced about fraudulent cases emerging from such online practices.
In Telangana, 11 people have been arrested so far in connection to such dubious loan companies. The Cyberabad police has also reportedly written to
India’s central bank to monitor digital lending, says recent spurt of lending apps has raised serious concerns
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