India Asks Google to Help Police Illegal Apps

In an effort to curtail the usage of illicit lending apps within the nation, regulators in India are calling on Google to assist police the state of affairs and rein in people who have interaction in underhanded practices not sanctioned by the central financial institution.

The Reserve Bank of India (RBI) has been speaking with the Alphabet subsidiary about instituting insurance policies that may assist put off unscrupulous lending apps, Reuters reported Monday (Sept. 19), citing 4 unnamed sources with insider data. 

Read extra: Reserve Bank of India Strengthens Digital Lending Rules

While Google doesn’t fall underneath the supervision of India’s central financial institution, regulators have additionally been looking for the help of lenders to extend checks in opposition to unlawful lending apps, in keeping with the report. Illegal lenders sometimes cost excessively excessive charges for curiosity and different charges, and so they usually have interaction in restoration practices that aren’t permitted by RBI or break cash laundering or different authorities legal guidelines.

Last 12 months, Google modified its Play Store developer program coverage for monetary companies apps. Effective September 2021, private mortgage apps in India warrant further data.  

“We have removed over 2,000 personal loan apps targeting India from the Play Store for violation of the Play policy requirements,” a Google spokesperson mentioned, per Reuters. “We will continue to engage with law enforcement agencies and industry bodies to help address this issue.”

Related: RBI to FinTechs: Non-Banks Can’t Reload Funds to Prepaid Wallets, Cards

The RBI mandates that lending apps obtainable in app shops should be backed by regulated entities, however it’s Google who’s the enforcer and should oversee and guarantee compliance. Google was additionally requested to look into curbing unlawful lending apps on different distribution channels, an unnamed business supply who’s immediately concerned advised Reuters.

The search large can be shifting to take motion on the complaints it will get about apps from business our bodies.

“Earlier Google would not respond to complaints on individual apps. Now they are more proactive and do look into it when a complaint is flagged to them,” one of many 4 business sources advised Reuters.

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