App stores can only host lending apps regulated by RBI: FinMin
MeitY has shared a list of RBI-approved entities that app stores can host.
Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Rajya Sabha said that app stores are to host Digital Lending Apps (DLAs) regulated by the Reserve Bank of India.
The RBI has shared with the Ministry of Electronics and Information Technology (MeitY) a list of Digital Lending Apps (DLAs) being used by its regulated entities.
MeitY has also shared this list with app stores and has asked the platforms to host only those on the list.
The Minister also said that the RBI has issued digital lending guidelines advising measures including, inter alia, due diligence of Loan Service Providers (LSPs), direct disbursal of loans from the bank account of lenders to the bank account of the borrowers without any pass-through/pool or third-party account to avoid layering, publishing of the list of DLAs, LSPs engaged by REs and details of activities to avoid anonymity.
MeitY on Sunday ordered a ban on 94 lending apps and 138 betting apps for their ‘Chinese links’. On Monday, it emerged that PayU’s LazyPay and Kissht too had been blocked
YourStory reported that Lending platform , —now part of Ola Money, PaymeIndia, Faircent, RupeerRedee, and Indiabulls Housing Finance Ltd are also featured on the list.
Edited by Kanishk Singh