Govt Takes Initiative Against fraudulent digital Loan Application: Nirmala Sitharaman

Government is taking steps against apps that originate from outside the country and Indians who played a role in establishing them.

The FM added that the vast majority of the apps that are deemed to be fraudulent originate from one specific nation.

The government is ramping up its efforts to combat dubious applications, various departments are working together to determine the best course for the future.

Finance Minister Nirmala Sitharaman said that the Indian government has taken action against suspect digital loans. The government has taken action against loan applications originated from outside the country, and also Indians who have helped set these apps, she told Rajya Sabha.

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She also said that the majority of the apps that are deemed to be fraudulent originate from a specific country, according to an PTI report. This means that a large number of people are subject to harassment as well as money being stolen through these apps.

As the government ramps its fight against these applications, various departments, including those of the Ministry of Finance, Corporate Affairs, Ministry of Electronics and Information Technology among others, are collaborating to discuss and create the course of action for these cases.

The FM also mentioned the case of Telangana where many people were victimized by harassation a few months ago. Although action has been taken to address the issue The government is looking to initiate actions across the country.

Alongside taking actions to stop Indian citizens who may have assisted in the establishment of these businesses, the government is monitoring the shell companies that operate.

It is worth noting that Reserve Bank Of India (RBI) Governor Shaktikanta Das has stated that central banks will provide guidelines for regulating the lending of digital funds in the near future.

It took longer than we originally thought however, the situation is extremely complex that we’re being extremely cautious and extremely prudent. One hand is that we need to encourage innovation, but however we need to ensure the financial stability of the company, Das said.

In 2021 In 2021, it was announced that the RBI had set up the committeeto prepare an initial report on lending via digital channels which includes lending via mobile apps and platforms online.

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