Government takes steps to mitigate operations of unauthorized digital loans apps
FM Nirmala Sitharaman confirms Government and RBI are curbing unauthorized digital loan apps. RBI launched a DLA directory, and MeitY is empowered to block unverified apps under Section 69A of the IT Act.
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In a major move, the government has been constantly engaging with the Reserve Bank of India (RBI) and other concerned Regulators or stakeholders to curb the operations of unauthorized digital loan apps in the country.
Finance Minister Nirmala Sitharaman while replying to a question in the Lok Sabha said that the RBI has operationalized a directory of ‘Digital Lending Apps (DLAs)’ on its website for public information, with effect from 1st of July this year.
She said, the Directory consists of all DLAs deployed by Regulated Entities of RBI. She added that the directory aims to aid the customers in verifying the claim of a DLA’s association with a Regulated Entity.
Further in the case of unauthorized digital loan apps being identified, the Ministry of Electronics and Information Technology is empowered to issue directions for blocking of information for public access under Section 69A of Information Technology Act, 2000.
It will be done after following the due process as provided in the Information Technology (Procedure and Safeguards for Blocking for Access of Information by Public) Rules, 2009. Ms Sitharaman added that the Government and RBI have been taking up various initiatives from time to time to protect citizens from exploitation by unauthorized loan apps.