RBI ON CRYPTOCURRENCY

RBI to whitelist mobile financial applications

RBI

The Indian law enforcement agencies have recently started following dangeous lending applications that have been functioning illegally in the nation. The Reserve Bank of India (RBI) has been asked to create a “whitelist” of fast financing applications that are legally permitted to function in India after Finance Minister Nirmala Sitharaman became aware of these fraudulent instant loan apps. Recently, a number of low-income Indians have fallen victim to predatory lending applications, trapping them and exposing them to risky financial and physical situations.

After creating the whitelist, India’s Ministry of Electronics and Information Technology (MeitY) will make sure that only the apps that have received RBI approval are available on app stores.

“RBI will make sure that payment aggregator registration is finished promptly and that no unregistered payment aggregators are permitted to operate after that. Customers, bank staff, law enforcement agencies, and other stakeholders should all be made more cyber-aware, the government stated in a news statement.

The choice was made one day after Sitharaman presided over a meeting with representatives from the RBI and the finance ministry to examine different concerns regarding “illegal lending apps” that have been functioning in the nation without being detected by the traditional banking channels.

During the discussion, Sitharaman also voiced her worries over the predatory recovery techniques used by these illicit lending apps. These include criminal intimidation and extortion.

The danger of money laundering, tax evasion, data breach/privacy, and exploitation of unregulated payment aggregators, shell firms, defunct NBFCs, etc. for carrying out such acts were also mentioned by Sitharaman, according to the government’s news release.

RBI ON CRYPTOCURRENCY
RBI WITH CRYPTOCURRENCY

Due to suspected irregularities in mobile app-based loans that were’managed’ by Chinese people, Bengaluru’s six online payment gateway sites were the target of an earlier last week raid by India’s financial watchdog, the Enforcement Directorate (ED). In addition, the authorities confiscated Rs. 17 crore from the companies searched, including Razorpay, Paytm, and Cashfree.

These raids appear to have prompted Sitharaman’s decision to request that the RBI create a whitelist of finance applications.

In reality, Andhra Pradesh Chief Minister YS Jagan Mohan Reddy requested action against online money-lending apps on Friday, September 9, after a couple from Rajahmundry in the East Godavari district committed suicide earlier this week as a result of harassment by loan app agents.

The Reserve Bank of India will create a “whitelist” of instant financial apps that can be housed on these online storefronts in an effort to stop the development of fraudulent loan applications on smartphone app stores.

A government official told CNBC-TV18 that the RBI will create the list and the Ministry of Electronics and Information Technology (MeitY) would make sure that only those apps are hosted on the app stores.
The RBI made the decision to start this initiative after Finance Minister Nirmala Sitharaman recently voiced her concerns about the rise in illegal loan apps that offer loans/microcredit, particularly to vulnerable and low-income group members, at exorbitant interest rates and processing/hidden charges, as well as predatory recovery practices involving blackmail, criminal intimidation, etc.

The Reserve Bank of India (RBI) has been instructed by Financial Minister Nirmala Sitharaman to create a “whitelist” of fast finance applications that are legally permitted to operate in India. MeitY will make sure that only the apps having RBI clearance are featured on application stores after the whitelist has been created. The Reserve Bank of India (RBI) has been instructed by Financial Minister Nirmala Sitharaman to create a “whitelist” of fast finance applications that are legally permitted to operate in India. MeitY will make sure that only the apps having RBI clearance are featured on application stores after the whitelist has been created.

Visit our youtube channel and subscribe.

Follow us on Quora

Home [Click]

By Ayomide

Leave a comment