Loan Apps: RBI warns public against unauthorised digital lending platforms, apps | India Business News – Times of India

Clipped from: https://timesofindia.indiatimes.com/business/india-business/rbi-warns-public-against-unauthorised-digital-lending-platforms-apps/articleshow/79926986.cms

NEW DELHI: The Reserve Bank of India (RBI) on Wednesday cautioned the general public against unauthorised lending platforms and mobile apps.
In an official release, RBI said that there have been reports about people falling prey to digital lending scam in order to get quick and hassle free loans.
“Members of public are hereby cautioned not to fall prey to such unscrupulous activities and verify the antecedents of the company/ firm offering loans online or through mobile apps,” the RBI said.
These platforms charge excessive rates of interest and additional hidden charges, adopt unacceptable and high-handed recovery methods and misuse agreements to access data on mobile phones of borrowers.
Further, the central bank urged consumers not to share copies of KYC documents with unidentified persons and unverified apps. It also asked people to report such apps or bank account information associated with the apps to concerned law enforcement agencies or use Sachet portal to file an on-line complaint.
The RBI notification came hours after reports that 19 people were arrested from Hyderabad and Gurgaon in connection with nation-wide money lending app scam. The tap-and-get-a-loan “solution” has pushed a large number of people into a trap far deeper than the financial condition they are in.

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