Lok Sabha Question No. 4113 (UNSTARRED), answered on 2022-03-28
Subject: Illegal Digital Lending Apps
Ministry: FINANCE
Asked by: Manish Tewari, Venkatesh Netha Borlakunta, Gaddam Ranjith Reddy, Manoj Rajoria, Dayakar Pasunoori

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO.4113

To be answered on the 28 th March 2022/Chaitra 7, 1944 (Saka)

Illegal Digital Lending Apps

## 4113.SHRI MANISH TEWARI:

SHRI VENKATESH NETHA BORLAKUNTA: DR. G. RANJITH REDDY: DR. MANOJ RAJORIA: SHRI PASUNOORI DAYAKAR:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Reserve Bank of India (RBI) has found 600 illegal digital lending apps operating and duping innocent people in the country;
- (b) if  so,  whether  thousands  of  complaints  have  been  received  against  the  said  apps  between January 2020 and March, 2021;
- (c) if so, the details thereof, State-wise including Telangana;
- (d) whether the Government has taken congnizance of the aforesaid facts and initiated any legal action against such illegal entities/apps; and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (DR. BHAGWAT KARAD)

(a) to (c): As per the findings of RBI's Working Group on digital lending, the number of illegal lending apps stood at approximately 600 from 1.1.2021 to 28.2.2021. As per RBI, 'Sachet', a portal established by RBI under State Level Coordination Committee mechanism for registering complaints by public against unregistered entities has received approximately 2,562 complaints against digital lending apps from 1.1.2020 to 31.3.2021. Details of these complaints state-wise including Telangana is at Annex.

(d) and (e): The Department of Supervision, RBI has been designated as the nodal department for dealing with complaints against unauthorised digital lending platforms/Mobile Apps and a mechanism to handle specific references on unauthorised digital lending platforms/ Mobile Apps has been laid down. Further, vide press release dated 23.12.2020, RBI had cautioned the general public not to fall prey to unscrupulous activities of unauthorised digital lending platforms/Mobile Apps and verify the antecedents  of  the  company/  firm  offering  such  loans.  RBI  has  also  issued  advisories  to  State Governments to keep a check on unauthorised digital lending platforms/Mobile Apps through their respective  law  enforcement  agencies.  Further,  following  the  due  process  specified  in  Information Technology (Procedure and Safeguards for Blocking for Access of Information for Public) Rules, 2009 notified under section 69A of Information Technology Act, 2000, Ministry of Electronics and Information Technology blocked 27 unlawful loan lending apps.

## Lok Sabha Unstarred Question no. 4113 for 28.3.2022 regarding 'Illegal Digital Lending Apps'

## State wise number of complaints received since January 2020 to March 2021

| Maharashtra              | 572   |
|--------------------------|-------|
| Karnataka                | 394   |
| Union Territory of Delhi | 352   |
| Haryana                  | 314   |
| Telangana                | 185   |
| Andhra Pradesh           | 144   |
| Uttar Pradesh            | 142   |
| West Bengal              | 138   |
| Tamil Nadu               | 57    |
| Gujarat                  | 56    |
| Other States and UTs     | 208   |
| Total                    | 2,562 |

Source: RBI ***