87 loan-offering apps banned in India, government takes strict action to prevent fraud

The Indian government has taken strict action and banned 87 fraudulent loan-offering apps. The government informed the Lok Sabha that this action was taken following complaints of data misuse and fraud.

The Indian government has taken strict action against loan-offering apps and banned 87 illegal apps. Orders have been issued by the Ministry of Electronics and Information Technology (MeitY). The ministry has taken this action under Section 69A of the IT Act 2020. Harsh Malhotra, Minister of State for Corporate Affairs, informed the Lok Sabha. Let's learn more about this.

This will be the benefit.

This action taken by the government will completely curb the operation of these apps in India. Furthermore, new users will not fall prey to these apps. It should be noted that complaints were being received from various parts of the country that loan apps were not only misusing data but also harassing people. These apps have also been accused of stealing personal data and blackmailing people.

Attempts to Keep People Safe - Minister

The Minister stated that action is taken whenever laws are violated. The government has taken this action based on the Companies Act and the IT Act. He added that the government wants to keep people digitally safe and prevent them from being scammed.

Fake Loan Apps Charge Interest Up to 25%

According to reports, once a loan is taken from a fraudulent app, it becomes very difficult for people to escape from this vicious cycle. Many apps charge interest of up to 25% per month. If a user refuses to pay the interest, they are blackmailed with edited photos, and there have been instances of threats to their family and friends. Many times, after being banned, these apps start working again.