One of the biggest scams circulating in India is the predatory personal loan applications. These predatory lending by instant loan apps has led to many suicides in India because of their unethical loan recovery and blackmail methods.
Most of the apps have been traced back to China and are linked to money laundering. These apps are under the scanner of the Union Ministry of Interior, which is expected to ban 300 of these apps soon, as reported by News18 (opens in new tab).
These applications are being closely watched by the Directorate of Enforcement, Bureau of Serious Fraud Investigation, Bureau of Intelligence, R&AW and the Reserve Bank of India.
The Interior Ministry’s action comes after several reports shared by various state governments in Telangana, UP, Gujarat, Delhi, Punjab and Odisha.
According to state police officials, there are around 1,000 of these loan applications in India, with more and more of them being launched frequently. A recent report by the Hyderabad Police detective department said that a Chinese national who runs four shell companies carried out transactions worth Rs. 21,000 crores.
These apps should have been banned sooner
We have seen many Chinese apps and games being banned such as PUBG, Free fire, BGMI, TikTok, Helo and more. All these apps were banned because they are of Chinese origin or have a connection to China.
These predatory lending apps not only have Chinese connections, but they actively operate extorting money from the common man. These were the apps that should have been banned in the first place.
But yes, the union government finally took notice and is going to ban these types of fraudulent apps.
It is not enough to ban apps, in my opinion, there must be a mechanism by which new apps in this instant lending industry are regulated. Because those apps will come back with a different name and repeat the same things over and over again.
For now, let’s wait for the official ban on these apps. As this report is not an official government notification, the ban has not yet been implemented, let’s wait.