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Engage domain experts in probes into unregulated loan app plaints: Centre to states/UTs | India News


NEW DELHI: Draws the “urgent attention” of all states and Union territories to illegal and unregulated digital lending applications, mostly by Chinese entities. Nationally controlled, the interior ministry has asked the respective law enforcement agencies to invite experts in the field to investigate such complaints.
“A large number of complaints have been reported across India regarding illegal digital loan applications that provide short-term loans or micro-credits with exorbitant interest rates attached. processing or hiding fees, especially for those belonging to vulnerable and low-income groups, and using “borrowers” of confidential personal data such as contacts, location, photos/videos to blackmail/harassment. The harsh recovery operations followed by these illegal loan applications have claimed the lives of many people across India. This issue has had a serious impact on national security, the economy and the safety of citizens,” the Interior Ministry said in a statement sent to all state secretaries and administrators. UT on October 28.
A few months back, Conference raised the issue that some Chinese apps have earned around Rs 500 crore by tricking thousands of Indians through a debt trap. It is alleged that an investigation from January to February 2021 found more than 1,100 digital loan applications available. Claiming that loans on digital platforms increased 12x from 2017 to 2020 and there were 52 suicides due to extortion by these lending apps, Congress sought to know the Narendra government What is Modi doing to curb these behaviours.
The Department of the Interior, in its October 28 letter to states and UTs, admitted to knowing that these predatory loan applications “may not be regulated by RBI entities (Reserve Bank of India)” is using mass SMS, digital advertising, instant messaging and mobile app stores at scale. “Borrowers must provide required access to contacts, location, phone memory in order to obtain a loan. This data is misused to harass and blackmail citizens using distorted images and other abuses by recovery agents in India as well as abroad in violation of the law. RBI fair practice code.
The MHA further notes that such illegal acts by Chinese-controlled apps are an organized activity. Cybercrime executed using disposable email, virtual number, la account, shell company, payment aggregator, API services (account authentication, document verification), cloud storage, electronic money etc… Therefore, domain experts should be involved in the investigation of such mobile applications.
The department asked law enforcement agencies to utilize the services of the National Forensic Laboratory (NCFL), one of the verticals of India’s Cybercrime Coordination Center (14C), for assistance. techniques in loan application analysis, malware analysis, and cryptocurrency transaction tracing.
“All states/UTs are required to take strict legal actions on this…also raise public awareness in all counties about the risks of using such apps. ,” the MHA letter said.

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