RBI-warns-public-about-shady-digital-lending-apps

Loan Apps | RBI Warns Public Against Unauthorized Digital Lending Platforms: In an official release, RBI said that there are reports that people / small businessmen are getting caught in digital lending scam of these digital platforms and loan apps promising to give loans quickly and without any hassle.

The Reserve Bank of India (RBI) has appealed people to be vigilant about those who illegally offer loans through digital platforms and mobile apps.

According to the RBI, there have also been cases of asking for a higher interest rate and additional cost from the back door. Also, they are adopting such stringent methods of recovery, which cannot be accepted. Accesses to data on borrowers’ mobile phones are abusing the agreement.

The RBI said, “People are advised to be vigilant about such deceptive activities and thoroughly investigate the company / entity offering the loan through digital and mobile apps.” The bank has also asked customers not to share the copy of KYC (Know Your Customers) to unknown people or unauthorized apps.

Apart from this, inform the concerned legal authority about the bank account information associated with this type of app.

Loan Apps

Not only this, online complaints about such Loan apps, digital platforms can be registered by visiting Sachet Portal.

The RBI official notification came after 19 people were arrested from Hyderabad and Gurgaon in connection with Nationwide online money lending app scam.

People looking for instant and quick loans download money lending app that allows people to get instant loans only by collecting their Aadhaar and PAN card details & a selfie of the applicant. They also ask for access to the user’s media gallery and contact list. When the loan is sanctioned, the applicant gets seven days to repay the loan amount. It is when the loan is not repaid by the applicant the problem begins.

The RBI said that the Banking and non-banking financial companies (NBFCs), which are registered with the RBI, can be legitimately grant loans. Also, those units which are regular with the state governments under the legal provisions can do the job of lending.

The Reserve Bank has also arranged that those operating the digital loan platform on behalf of banks and NBFCs will have to disclose the name of the bank/NBFC upfront to the customers. The names and addresses of registered NBFCs can be obtained from the RBI website.

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