The purge, according to Karad, saw approximately 2,500 loan apps taken down between April 2021 and July 2022, with an additional 2,200 apps removed between September 2022 and August 2023. (Image: News18)
The government, said minister of state for finance Bhagwat Karad in Parliament, has been actively collaborating with regulatory bodies like the Reserve Bank of India and other stakeholders to curb the menace of illegal loan apps
Minister of state for finance Bhagwat Karad while speaking about the proliferation of illegal loan apps told the Rajya Sabha that the ministry of electronics and information technology in collaboration with Google successfully removed 4,700 fraudulent applications from the Play Store over the last 2.5 years, while the RBI shared a list of more than 400 such apps with MeitY.
MoS Karad revealed that the government has been actively collaborating with regulatory bodies like the Reserve Bank of India and other stakeholders to curb the menace of illegal loan apps. Highlighting their proactive stance on maintaining cybersecurity preparedness, Karad emphasised the importance of timely action to mitigate vulnerabilities in the Indian financial system.
As part of these efforts, he disclosed that the RBI had shared a list of 442 unique digital lending apps with MeitY for whitelisting and the same list was shared with Google. Subsequently, MeitY collaborated with the tech giant to remove or suspend over 4,700 fraudulent loan apps from the Play Store in the past two and a half years.
The purge, according to Karad, saw approximately 2,500 loan apps taken down between April 2021 and July 2022, with an additional 2,200 apps removed between September 2022 and August 2023. The minister then highlighted that Google has implemented stricter policies regarding the enforcement of loan apps on the Play Store, allowing only those published by regulated entities or their partners.
Moreover, it was stated that in tandem with these actions, the RBI has issued regulatory guidelines on digital lending to fortify the regulatory framework and enhance customer protection in the digital lending ecosystem. Additionally, the Indian Cyber Crime Coordination Centre (I4C) under the ministry of home affairs has been actively monitoring digital lending apps.
To empower citizens in reporting cyber incidents, including those related to illegal loan apps, the union home ministry has launched the National Cybercrime Reporting Portal and established a dedicated helpline number. Furthermore, various awareness initiatives, including cyber safety tips on social media, educational handbooks, and cybercrime prevention campaigns, have been undertaken by the government and RBI.
The minister concluded by affirming the government’s commitment to combating cybercrimes, particularly those associated with fraudulent loan apps, through sustained vigilance, regulatory measures, and awareness campaigns such as electronic banking awareness and training (e-BAAT) programmes by the RBI.
