Action against 108 illegal money lending apps

NT Correspondent

A major online financial fraud and theft of personal data of applicants by illegal money lending apps promising quick cash has been busted in Karnataka. Acting on complaints from some victims, who took loans using these apps, the police department and Cyber-crime Department acted against many apps.

In a joint operation by Bengaluru city police and Cyber-crime, as many as 108 illegal money lending apps were found operating in Karnataka and they succeeded in taking action against them in the last three months. These apps are available on multiple app stores for Android users to dupe unsuspecting users. According to the reports, these loan apps were working that can search through keywords like loan, instant loan, quick loan etc on the internet. “Majority of the complaints pertain to lending apps promoted by entities not regulated by the Reserve Bank of India such as companies other than NBFCs, unincorporated bodies and individuals,” says a senior official from Cyber cell.

During the probe the cyber cell has also identified 120 plus accounts in different banks opened by these illegal money lending apps and seized Rs 5 crore.

India has one among the highest number of such apps in the world. The Reserve Bank of India had in November 2021 framed new rules for digital lenders. A panel set up by the bank found that more than half of about 1,100 digital loan providers were operating illegally.