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Nearly 2,500 complaints against digital lending apps, says Finance Ministry – The New Indian Express

By Express News Service

BENGALURU:  With 572 complaints against illegal lending apps, Maharashtra tops the list, followed by Karnataka (394) and Delhi (352). The finance ministry on Monday said a total of 2,562 complaints have been received against digital lending apps between January 1, 2020 and March 31, 2021. This was the period during which digital lending apps gained popularity amid job losses due to Covid-19.

As per the findings of RBI’s Working Group on digital lending, the number of illegal lending apps stood at approximately 600 from 1 January 2021 to 28 February 2021. “As per RBI, “Sachet”, a portal established by RBI under State Level Coordination Committee mechanism for registering complaints by the public against unregistered entities has received approximately 2,562 complaints against digital lending apps,” the ministry told Lok Sabha.

The Department of Supervision, RBI has been designated as the nodal department for dealing with complaints against unauthorised digital lending platforms/Mobile Apps and a mechanism to handle specific references on unauthorised digital lending platforms/ Mobile Apps has been laid down, the finance ministry said. 

RBI had cautioned the general public not to fall prey to unscrupulous activities of unauthorised digital lending platforms/Mobile Apps and verify the antecedents of the company/ firm offering such loans.

RBI warning to general public
The Department of Supervision, RBI has been designated as the nodal department for dealing with complaints against unauthorised digital lending platforms. RBI had cautioned the public not to fall prey to unscrupulous activities of unauthorised digital lending platforms and verify the antecedents of the company offering such loans.

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