Action: MHA is strict against Chinese lending apps, and states and union territories instructed to take action

The Union Home Ministry has taken a tough stand against Chinese lending apps. In this regard, the Union Home Ministry has also asked law enforcement agencies to take immediate strict action against the lending apps. Along with this, a letter has also been written to the states and union territories for action against such Chinese apps. Indeed, there have been several suicides in recent times due to harassment, blackmail, and extortionate extortion by Chinese-controlled entities. Because of these, the Center has taken this step.

In a letter sent by the Ministry of Home Affairs to all states and union territories to take action against illegal digital lending apps, it has been said that the issue has seriously affected national security, the economy, and civil security. In the letter, the Ministry of Home Affairs said that a large number of complaints related to illegal digital lending apps have been received across India. These Chinese apps offer short-term loans or micro-credits at exorbitant interest rates with no processing or hidden fees, especially for vulnerable and low-income groups. It further states that lenders use confidential personal data such as contacts, locations, photos, and videos of borrowers for blackmail and harassment. Due to all these reasons, many people have committed suicide. The ministry has also said that these apps cannot be entity regulated by the Reserve Bank of India (RE).

The home ministry said these illegal lending apps are largely using bulk SMS, digital advertising, chat messengers, and mobile app stores. To avail of the loan, the customers have to provide the acceptance and details of the address, mandatory access to mobile data, etc.

States and Union Territories were told that recovery agents located in India as well as abroad are using morphed photos and other data to harass and blackmail citizens in violation of the RBI's Fair Practice Code. Is. The Home Ministry said that after investigation it has been found that it is an organized cybercrime. Therefore, it is advisable to involve domain experts during the investigation.

The Ministry of Home Affairs has appealed to all the states and union territories to take strict legal action on this issue. Apart from this, all the states and union territories have also been asked to spread public awareness of the risks of using such apps in all the districts.

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