Central government ban on many lending apps including PayU’s LazyPay

While tightening the reins on lending apps, the central government has banned many apps including PayU’s LazyPay. Earlier this week, the government had banned many lending apps. There were also apps from some Indian firms. The blocked apps include Fintech Kissht, Faircent and Indiabulls Home Loans.

After the notice from the Ministry of Electronics and Information Technology, along with these apps, their websites have also been removed. LazyPay spokesperson in a statement about this told, “Due to unavoidable circumstances, our website and app are not accessible through some Internet Service Providers. We are making every effort to resolve this issue.” Last month, the government told Parliament that the Reserve Bank of India (RBI) has issued advisories to state governments asking them to control unauthorized digital lending platforms and mobile apps.

Earlier this week, the central government China 138 betting and 94 lending apps were ordered to be banned. This action was taken by the Ministry of Electronics and Information Technology. According to reports, the government started scrutiny of many Chinese apps about six months ago. It was revealed that these apps have personal information of the people of the country.

Many complaints of illegal recovery and harassment of people were received against these apps. These apps give loans of small amount to people and charge huge interest on it. It has been said in the report that behind these apps are the citizens of China, who run their illegal business by making the people of India directors in it. After taking a loan from these apps, when people have trouble paying interest on it, people are harassed with threats like leaking their personal information. The matter came to the limelight in Andhra Pradesh and Telangana after some people committed suicide after taking loans from these apps or losing money on betting apps. States like Uttar Pradesh, Telangana and Odisha had requested the Home Ministry to take action against these apps. Last year, the government asked Google to implement stricter rules to stop the use of illegal lending apps.