It has become a game of cat-and-mouse game between law enforcement and predatory or fake lending apps in the country. Even as various police departments in the country are cracking down on these apps — which mushroomed during the pandemic — some of these apps are re-branding themselves and restarting operations. The Reserve Bank of India (RBI), which has been actively monitoring the issue, believes that these apps will continue to operate for at least a year, if not more. Over the last year, a number of unauthorised digital lending apps popped up on Google’s Play Store and other Android app store. But these apps charge exorbitant fees and interest rates, and resort to extortion and blackmail tactics to collect payments from borrowers. As a result, a number of borrowers have committed suicide beginning in October last year. According to a senior financial consultant, the RBI expects the problem to continue for at least one year as far as their supervisory efforts are concerned "They are scanning their complaints database, speaking to banks and other regulated entities on market information and they are continuously pushing different players to monitor customer issues," this person said on the condition of anonymity. In February 2021, the RBI constituted an internal working group to recommend regulations for digital lending platforms and mobile applications. The report has been submitted by the working group to the central bank for evaluation, multiple sources told MediaNama. What you need to know Hundreds of new digital lending apps emerged…
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