RBI gave a list of apps working with NBFCs to Centre before ban
1 min read . Updated: 08 Feb 2023, 09:11 PM IST
PremiumRBI Governor Shaktikanta Das said the central bank had sought a list from NBFCs that were registered with it for the apps that they were working with
The Reserve Bank of India (RBI) gave a list of apps working with non-banking finance companies registered with the central bank, to the government ahead of the ban on some digital lending apps earlier this week, said officials on Wednesday.
"We have given a list of apps which work with NBFCs (non-banking finance companies) to the government. On that basis, the government has taken this step," Governor Shaktikanta Das.
Earlier this week, the Ministry of Electronics and Information Technology (Meity) banned 94 loan apps, of which some had connections to China.
It also included some apps involved in what reports described as predatory lending with unfair terms, which led to a debt trap for the borrowers.
RBI Governor Shaktikanta Das said the central bank had sought a list from NBFCs that were registered with it for the apps that they were working with.
He said that ‘there are many illegal and illegitimate apps’ which promise to lend even though no NBFC has appointed them. These entities sent such messages on mobiles
Deputy Governor M Rajeshwar Rao said the RBI has not suggested imposing ban on any of the digital lending apps, and the central bank's role is limited to sharing the list of apps used by entities registered with the RBI.
"The ministry has requested the play stores to remove these apps which are not what you call operated by the regulated entities from the play stores," he added.
The list of banned apps include 'Buy Now Pay Later' (BNPL) apps such as LazyPay and Kissht.
Kissht’s founder Ranvir Singh said that its app and website are working fine but noted a Play Store notification related to Kissht
“The Kissht app and website are working for its customers. We are aware that Google has been asked to take down a list of companies from the Play Store that includes our company, but uncertain about the cause of such a notification. We are meeting officials tomorrow to seek clarification," he added.
“Due to unavoidable circumstances our website and app are currently unavailable via a few internet service providers. Please be assured that we are doing everything to resolve the issue," PayU said.
