The Indian government has taken strict action against several illegal loan-offering apps by banning 87 such apps.
The Ministry of Electronics and Information Technology (MeitY) issued this order under Section 69A of the IT Act 2020.
Harsh Malhotra, Minister of State for Corporate Affairs, shared this information in the Lok Sabha.
This step is expected to stop the operations of these apps completely and protect new users from falling into their trap.
For some time, complaints were being reported from many parts of the country that these loan apps were misusing user data and harassing people.
Some apps were also accused of stealing personal information and blackmailing users.
Government Aims to Ensure Digital Safety
The minister stated that whenever laws are violated, action is taken.
He explained that the government has acted based on the Companies Act and the IT Act to keep people digitally safe and protect them from online scams.
Fake Loan Apps Charged Very High Interest
Reports show that once people take loans from these fraudulent apps, it becomes extremely difficult for them to escape the cycle of debt.
Many of these apps charged up to 25% interest per month. If users refused to pay, they were threatened, blackmailed using edited photos,
and even harassed by targeting their family and friends. In many cases, these apps returned under new names even after being previously banned.
