Google is identifying apps which violate local laws and regulations by fraudulent digit lending. Action will be taken against such apps without issuing notice.
New Delhi| Google on Thursday reported that it has removed hundreds of personal loan apps from its PlayStore in India that were offering digital loans in violation of the rules. Google is reviewing these apps based on the flags raised by common people and government agencies. However, Google has not yet provided information on the number of apps removed from the PlayStore. But fintech expert Shrikant L has said that Google has removed at least 118 digital loan apps in the last 10 days.
Google has written in its blog that it has received information from its developers about digital loan apps violating the rules. Along with this, Google is identifying apps which violate local laws and regulations by fraudulent digit lending. Action will be taken against such apps without issuing notice.
Under the new policy of Google, it is necessary to give clear information to the user about the minimum and maximum time frame of payment and maximum interest rate for the personal loan app. This action is being taken because from the last few months, reports of many fraudulent cases of mobile apps-based lending have come to light. These apps first easily give loans from 5000 to 50000 rupees, and then charge interest ranging from 60 to 100 percent on it. At the same time, people who do not repay the debt are threatened and harassed in the name of recovery.
Meanwhile, the Reserve Bank of India (RBI) has formed a working group amid incidents of harassment through the loan app. Working groups have been asked to identify threats to consumers with unregulated landing apps. RBI had recently cautioned people with an online app for early loan approval and lending at high rates.