Business
The Finance Minister expressed concern on increasing instances of Illegal Loan Apps offering loans/micro credits.
Updated : Sep 09, 2022, 02:32 PM IST | Edited by : Ayushmann Chawla
Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chaired a meeting yesterday to discuss the various issues related to “Illegal Loan Apps” outside the regular banking channels.
The meeting was attended by the Finance Secretary, Ministry of Finance; Secretary, Economic Affairs; Secretary, Revenue, & Corporate Affairs (Addl. Charge); Secretary, Financial Services; Secretary, Electronics & Information technology; Deputy Governor, RBI; and Executive Director, RBI.
The Finance Minister expressed concern on increasing instances of Illegal Loan Apps offering loans/micro credits, especially to vulnerable & low-income group people at exorbitantly high interest rates and processing/hidden charges, and predatory recovery practices involving blackmailing, criminal intimidation etc. Smt. Sitharaman also noted the possibility of money laundering, tax evasions, breach/privacy of data, and misuse of unregulated payment aggregators, shell companies, defunct NBFCs etc. for perpetrating such actions.
After detailed deliberations on legal, procedural & technical aspects of the issue, it was decided in the meeting that:
All Ministries/Agencies to take all possible actions to prevent operations of such Illegal Loan Apps.