New Delhi, October 30: MHA asks states, UTs to take urgent action against predatory Chinese lending apps.
In a communication to all states and Union territories, the MHA said that the issue has caused a serious impact on national security, economy and citizen safety. It said a large number of complaints have been reported across India related to illegal digital lending apps that provide short-term loans or microcredits at exorbitant interest rates with processing or hidden charges, especially to vulnerable and low-income group people.
The home ministry said after investigation it has been found that this is an organised cybercrime executed using disposable emails, virtual numbers, mule accounts, shell companies, payment aggregators, API services (account validation, document verification), cloud hosting, cryptocurrency, etc.
Further, all states and UTs are also requested to spread mass awareness in all districts against the risks of using such apps,” it said.
A large number of Chinese-controlled loan apps have been found to be indulging in predatory lending in the recent past.