IT ministry sets ‘2 day deadline’ for lending apps – Times of India

Five days after banning digital lending websites and apps, the IT ministry has given 48 hours for these platforms to prove their genuineness, a senior government official reportedly said. The ban was imposed on the platforms because their businesses were not genuine.
“Why would there be any ban if they were genuine? Action has been taken on them,” news agency PTI quoted a ministry official as saying.
“They have been given 48 hours under the rule to submit documents. The decision will be taken based on their presentation. It is going on now,” another senior official was quoted as saying.

Why were the apps banned?
Last week, the government ordered the blocking of 232 apps operated by overseas entities, for being involved in betting, gambling and unauthorised loan services.
On February 5, the IT ministry started the process of banning and blocking 138 betting apps and 94 loan lending apps, “which reportedly have Chinese links on an ‘urgent’ and ’emergency’ basis”.
The apps have been blocked under the Section 69 of the IT Act as they contain material which is prejudicial to sovereignty and integrity of India. Fintech firms LazyPay, IndiaBulls Home Loans and Kissht are among the list of blocked platforms.
Some companies have also raised concerns about impersonating apps.
Last month, the government informed Parliament that the Reserve Bank of India (RBI) issued advisories to state governments to keep a check on “unauthorised digital lending platforms and mobile apps through their respective law enforcement agencies”.

“We asked the NBFCs to give us a list of the apps they use for lending purposes. We have given that list to the government. And, the government has taken this step based on the list that we have provided,” said RBI Governor Shaktikanta Das.
Meanwhile, M Rajeshwar Rao, Deputy Governor, RBI, said that the apex bank has not suggested banning any digital lending apps.
“We have (only) shared with the ministry the list of apps that are used by entities regulated by RBI. The ministry, I think, has asked the play stores to remove apps that are not operated by entities regulated by RBI,” Rao added.