Lok Sabha Question No. 631 (UNSTARRED), answered on 2023-07-24
Subject: Frauds through Online Loan Apps
Ministry: FINANCE
Asked by: Rajendra Dhedya  Gavit

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## LOK SABHA UNSTARRED QUESTION NO-631

ANSWERED ON- 24/07/2023

## FRAUDS THROUGH ONLINE LOAN APPS

## 631. SHRI RAJENDRA DHEDYA GAVIT

Will the Minister of FINANCE be pleased to state:-

- (a) whether  the  Government  has  tracked  the  increasing  number  of  frauds  being committed through online loan apps;
- (b) if so, the details of the reported cases between Financial Year 2020-21 to 2022-23;
- (c) whether the Government has come out with any rules to regulate the functioning of online loan apps;
- (d) if so, the names of the apps against which action was taken and being taken in the last one year because of non-compliance; and
- (e) the  details  of  steps  taken/being  taken  to  ensure  constant  monitoring  of  potential defaulters for non-compliance?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (DR. BHAGWAT KARAD)

(a) to (e): Complaints against regulated entities (REs) regarding online loan apps/digital lending  are  being  lodged  with  RBI  as  per  RBI-Integrated  Ombudsman  Scheme,  2021. Also,  there  is  a  portal  na med  as  'Sachet'  established  under  State  Level  Coordination Committee mechanism for registering complaints by public. As per inputs received from RBI and National Crime Records Bureau (NCRB), the information on increasing number of frauds being committed through online loan apps is not available with them. However, as  per  NCRB,  total  number  of  cyber  fraud  cases  which  includes, inter  alia ,  frauds committed through online apps are 14,007 in 2021 (latest published data pertains to the year 2021).

The number of complaints related to 'digital lending apps' received by the Offices of the RBI Ombudsman (ORBIOs) against REs under Reserve Bank -Integrated Ombudsman Scheme, 2021 (RB-IOS) from November 12, 2021 till March 31, 2023 is as under:

| Period                              | No. of complaints   |
|-------------------------------------|---------------------|
| November 12, 2021 to March 31, 2022 | 263*                |
| April 01, 2022 to March 31, 2023    | 1,062               |

RBI has issued regulatory guideline on digital lending vide circular dated 2.9.2022 aimed at firming  up  the  regulatory  framework  for  digital  lending  while  enhancing  customer protection  and  making  the  digital  lending  ecosystem  safe  and  sound.    This  regulatory framework  is  based  on  the  principle  that  lending  business  can  be  carried  out  only  by entities that are either regulated by it or entities permitted to do so under any other law.

All  the  REs  are  required  to  comply  with  the  said  guidelines  on  digital  lending. Compliance  to  these  guidelines  are  examined  on  sample  basis  during  supervisory assessment  and  any  non-compliance  observed  is  taken  up  for  rectification  apart  from initiating supervisory/enforcement action, as deemed fit. The Enforcement Department, RBI has not imposed any monetary penalty on REs for non-compliance of guidelines on Digital Lending issued on September 09, 2022.

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