One of the biggest scams going around in India is the predatory personal loan apps. These predatory lending by instant loan apps have led to many suicides in India, because of its unethical loan recovery methods and blackmailing.
Most of the apps have been traced back to China and have been linked to money laundering. These apps have come under the scanner of the Union Home Ministry, which is reported to impose a ban on 300 such apps soon, as reported by News18.
These apps are being closely watched by the Enforcement Directorate, Serious Fraud Investigation Office, Intelligence Bureau, R&AW and the Reserve Bank of India.
The action from Home Ministry comes after various reports shared by various state governments of Telangana, UP, Gujarat, Delhi, Punjab and Odisha.
According to state police officials, close to 1,000 such loan apps exists in India, with more and more of them getting launched frequently. A recent report by the detective department of Hyderabad Police said that a Chinese national running four shell companies have carried out transactions worth Rs. 21,000 crores.
These apps should have been banned earlier
We have seen many Chinese apps and games getting banned, such as PUBG, Free fire, BGMI, TikTok, Helo and more. All these apps were banned for being of Chinese origin or having a connection to China.
These predatory loan apps not only have Chinese connections but actively operate by extorting money from the common man. These were the apps that were supposed to be banned in the first place.
But yeah, finally the union government has taken notice and is going to ban these kinds of scammy apps.
Not just banning apps is enough, in my opinion, there should be a mechanism whereby new apps in this instant loan sector should be regulated. Because these apps will come back in a different name and repeat the same stuff again.
For now, we will wait for the official ban for these apps. As this report is not an official notification from the Government, the ban is not yet implemented, we will wait.
