MeitY reverses ban against some digital lending platforms - Details

The Centre has decided to revoke a ban against some websites and apps after they shared documents to prove that they were regulated. The Ministry of Electronics and IT (MeitY) had issued orders against 232 apps operated by overseas entities earlier this month for involvement in betting, gambling and unauthorised loan services.

The Ministry is now sending out individual orders to internet service providers and the Google Play Store to revoke restrictions for some of these platforms. Digital lending apps such as LazyPay and Kissht have been un-banned under the latest orders. While lazypay.in is a subsidiary of Dutch investment firm Prosus, Kissht.com is operated by RBI-registered NBFC ONEMi Technology Solutions Private Limited.

Earlier on Thursday, the IT ministry had given two days to banned websites and apps to prove their genuineness. “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,” a senior official had told news agency PTI.

Also read: RBI gave a list of apps working with NBFCs to Centre before ban

The MeitY order - based on an emergency request from the Home Ministry - had been against 138 betting and gambling websites and 94 loan apps that were engaging in illegal money laundering and posing a threat to financial security of the country.

The initial list of banned apps had also included fintech firm IndiaBulls Home Loans - operated by Indiabulls Housing Finance Ltd. Meanwhile mPokket said an app impersonating it has been blocked by the government, insisting that it has no link with the blocked platform. 

The other websites in the block list include buddyloan.com, cashtm.in, kreditbee.en.aptoide.com, faircent.com and true-balance.en.uptodown.com.

(With inputs from agencies)