RBI Has Found 600 Illegal Lending Apps, Government Blocked 27 Of Them

Around 600 unlawful lending apps have been discovered by a Reserve Bank of India (RBI) working group, whereas the federal government has blocked 27 such apps.Interestingly, the RBI working group discovered these unlawful apps throughout a brief span of simply two months, i.e. between January 1, 2021 and February 28, 2021.At the identical time although, the RBI obtained as many as 2,562 complaints towards such digital lending apps between January 1, 2020 and March 31, 2021.The Ministry for Electronics and Information Technology has blocked 27 illegal mortgage lending apps underneath the provisions of Information Technology (Procedure and Safeguards for Blocking for Access of Information for Public) Rules, 2009 notified underneath part 69A of Information Technology Act, 2000.Out of the two,562 complaints obtained towards fraud digital lending apps, the utmost 572 complaints had been obtained from Maharashtra, adopted by Karnataka (394), Delhi (352) and Haryana (314).These complaints have been obtained on RBI's “Sachet” portal, which was arrange by the central financial institution underneath the State Level Coordination (*27*) mechanism for registering complaints by public towards such unregistered entities.As a preventive mechanism, the RBI cautions normal public to not fall prey to unscrupulous actions of unauthorised digital lending platforms or cellular apps. It advises individuals to confirm antecedents of corporations providing such loans.States are additionally issued advisories by the RBI to maintain a test on such unauthorised digital lending platforms by means of their respective legislation enforcement companies.