The Ministry of Electronics and Information Technology (MeitY) has recently announced a ban on loan apps, including non-Chinese apps like PayU’s LazyPay and Kissht. This decision has been taken in light of the increasing complaints received by the Ministry regarding unauthorised collection of user data by these apps and the harassment faced by borrowers in the form of repeated calls and messages.
LazyPay and Kissht are popular loan apps that allow users to take out small loans for various purposes. These apps have gained popularity among consumers due to their quick and convenient loan disbursal process, which has resulted in a significant increase in the number of downloads. However, the recent ban by MeitY has raised concerns among users about the safety of their personal and financial data.
MeitY’s decision to ban loan apps is in line with the government’s Digital India initiative, which aims to ensure the safe and secure use of digital platforms by citizens. The Ministry has stated that it will take strict action against any app that violates user privacy and data security norms.
PayU’s LazyPay and Kissht have stated that they are fully compliant with all data protection regulations and are committed to ensuring the safety and security of user data. They have also stated that they are working with MeitY to resolve the issue and get the ban lifted as soon as possible.
Representatives from the Ministry of Electronics and Information and Technology (MeitY), the Fintech Association for Consumer Empowerment (FACE), and the founders and CEOs of a number of digital lending companies will meet on February 7 to discuss their positions and request that restrictions be lifted.
The government, law enforcement, and internet service providers such as Google, which hosts applications on its Play Store, have recently scrutinised online lending services.
Among these is the buy-now-pay-later service LazyPay from financial behemoth PayU. LazyPay was previously banned from the Google Play Store in January 2021 for violating RBI regulations. Before issuing a ban order to internet service providers and telecom corporations, the Ministry of Home Affairs, which works on a number of intelligence sources, including local police cyber cell divisions, normally gives advise to the IT ministry.