Central government ban on many lending apps including Payu’s Lazypay

The central government has banned several apps including Payu’s Lazypay, curbing the lending apps. Earlier this week, the government banned many lending apps. Some of these were also apps of Indian firms. Blocked apps include Fintech Kissht, Faircent and Indibulls House Loans.

After notice from the Ministry of Electronics and Information Technology, their websites have also been removed along with these apps. Lazypay spokesperson said in a statement, “Our website and app are not available through some internet service providers due to unavoidable circumstances. We are making every effort to solve this problem.” Last month, the government stated in Parliament that the Reserve Bank of India (RBI) issued advisory to the state governments asking to control non -authorized digital lending platforms and mobile apps.

Earlier this week, the central government ordered 138 betting and 94 lending apps to ban China. This action was taken by the Ministry of Electronics and Information Technology. According to reports, the government started scrutiny of many Chinese apps about six months ago. It was revealed that these apps have personal information from the people of the country.

Many complaints of illegal recovery and harassment of people were received against these apps. These apps charge a huge interest on people by giving loans of low money. The report said that behind these apps, there are citizens of China who run their illegal business by making people of India a director in it. After taking a loan from these apps, when people have trouble paying interest on it, people are harassed by threats like leaking their personal information. The matter came into the limelight after some people in Andhra Pradesh and Telangana came to the headlines after some people took loans from these apps or after losing money on the betting apps. States like Uttar Pradesh, Telangana and Odisha requested the Home Ministry to take action against these apps. Last year, the government asked Google to implement strict rules to prevent the use of illegal lending apps.