Finance Minister Smt. Nirmala Sitharaman unveils Seven Steps to fight “Illegal Loan Apps”

 

Finance Minister Smt. Nirmala Sitharaman unveils Seven Steps to fight “Illegal Loan Apps”

          India’s Ministry of Finance today i.e09/09/2022 released a Press Release on “Illegal Loan Apps”

          As per the Press Release; - Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman chaired a meeting on 08/09/2022 to discuss the various issues related to “Illegal Loan Apps” outside the regular banking channels.

In Attendance: -

·       Finance Secretary, Ministry of Finance; Secretary, Economic Affairs;

·       Secretary, Revenue, & Corporate Affairs (Addl. Charge);

·       Secretary, Financial Services;

·       Secretary, Electronics & Information technology;

·       Deputy Governor, RBI;

·       Executive Director, RBI.

 

The following 7 steps are the proposed approach to minimise the impact of “Illegal Loan Apps” in India.

Step 01) RBI will prepare a “Whitelist” of all the legal Apps and MeitY will ensure that only these “Whitelist” Apps are hosted on App Stores.

Step 02) RBI will monitor the ‘mule/rented’ accounts that may be used for money laundering

Step 03) RBI to review/cancel dormant NBFCs to avoid their misuse.

Step 04) RBI will ensure that registration of payment aggregators be completed within a timeframe and no un-registered payment aggregator be allowed to function after that.

Step 05) MCA will identify shell companies and de-register them to prevent their misuse.

Step 06) Steps should be taken to increase cyber awareness for customers, bank employees, law enforcement agencies and other stakeholders.

Step 07) All Ministries/Agencies to take all possible actions to prevent operations of such Illegal Loan Apps.

Read the full press release @ https://pib.gov.in/PressReleseDetail.aspx?PRID=1857998

 

Disclaimer: These are my personal views only. The bottom line is Safe ePayments. Nothing More – Nothing less.