Lok Sabha Question No. 2418 (UNSTARRED), answered on 2021-12-13
Subject: Online Lending Apps
Ministry: FINANCE
Asked by: Vellalath Kochukrishnan Nair. Sreekandan, Ravneet Singh

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

## LOK SABHA UNSTARRED QUESTION NO. 2418

TO BE ANSWERED ON THE 13 TH  DECEMBER 2021/ AGRAHAYANA 22, 1943 (SAKA)

## Online Lending Apps

## 2418. SHRI V.K. SREEKANDAN: SHRI RAVNEET SINGH BITTU:

Will the Minister of FINANCE be pleased to state:

(a) whether  it  is  a  fact  that  according  to  the  findings  of  the  working  group  of  the Reserve Bank of India (RBI), 600 illegal loan apps are operating in India;

- (b) if  so,  whether  it  is  also  true  that  these  apps,  mostly  used  to  dupe  unsuspecting people, are available on several app stores for Android users in the country, if so, the details thereof, year and State-wise;
- (c) whether it is a fact that the RBI has received many thousands of complaints from January, 2020 to till date in this regard, if so, the details thereof year and State-wise;
- (d) whether majority of the complaints pertain to lending apps promoted by entities not regulated by the RBI as companies other than NBFCs, unincorporated bodies and individuals; and
- (e) if so, the details thereof and the corrective action taken by the Government in this regard?

## ANSWER

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

(a) and (b): Yes Sir. 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 and number of these apps are available on app stores in the country.

(c)  to  (e):  As  p er  RBI,  'Sachet',  a  portal  established  by  RBI  under  State  Level Coordination Committee mechanism for registering complaints by public has received approximately 2,562 complaints against digital lending apps from 1.1.2020 to 31.3.2021. Details of these complaints year and state-wise are at Annex. Also, as per findings of the RBI's Working Group on digital lending, majority of the complaints pertain to lending apps promoted by entities not regulated by the RBI such as companies other than NonBanking Financial Companies, unincorporated bodies and individuals. Major concerns raised in such complaints were issues of exorbitant interest and charges levied by digital lending  apps,  and  harassment  of  customers  for  loan  repayments.  On  Sachet  portal, complaints against lending apps promoted by entities not regulated by RBI are sent to concerned Registrar of companies for Ministry of Corporate Affairs registered entities, and to Economic Offences Wing of complainant's state for unincorporated bodies and individuals. 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. 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, MeitY blocked 27 unlawful loan lending apps.

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## Lok Sabha Unstarred Question no. 2418 for 13.12.2021 regarding 'Online 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

## Year wise Total complaints

| January 2020 to December 2020   | 1,259   |
|---------------------------------|---------|
| January 2021 to March 2021      | 1,303   |
| Total                           | 2,562   |

Source: RBI

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