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Wednesday, September 14, 2022

Will tighten the noose on illegal loan apps, RBI will prepare 'white list'

Will strain the mesh on illegal loan apps, RBI'll prepare' white list' 



A government functionary told CNBC- TV18 that the RBI'll prepare the list and the Ministry of Electronics and Information Technology( MeitY) will insure that only those apps are hosted on the App Store. 


New Delhi. The Reserve Bank of India( RBI) is preparing to crack down on illegal loan apps on the smartphone app store. For this, RBI'll prepare a whitelist of instant finance apps, which will be allowed to be hosted on these online storefronts. 

 

A government functionary told CNBC- TV18 that the RBI'll prepare the list and the Ministry of Electronics and Information Technology( MeitY) will insure that only those apps are hosted on the App Store. 



RBI decided to start this exercise when the Finance MinisterNirmala Sitharamanrecently expressed concern over the adding cases of illegal loan apps that offer loans micro credits especially for vulnerable and loan income group people. also intimidation tactics are espoused to recover the quantum. Sitharaman had also talked about the possibility of plutocrat laundering, duty elusion, breach of data sequestration and abuse of regulated payment aggregators, shell companies, dormant NBFCsetc. 


To prepare this white list, the Reserve Bank will cover mule/ rented accounts that can be used for plutocrat laundering, review/ cancellation of licenses of inactiveNon-Banking Financial Companies( NBFCs) to avoid their abuse. Can insure enrollment of payment aggregators within a time frame and block unrecorded aggregators after the deadline. Government sources said the commercial affairs ministry will identify and deregister shell companies to prop the RBI's sweats. 


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