“However, they hold back at least 25 percent of the money in the name of processing fees and, further, rate of interest Raman Gupta, Additional Commissioner of Police, Bengaluru, says that in some cases it is more, which is against Adarsh.
He alleged that the role of financial professionals in operating such instant loan apps on mobile phones is unclear.
“Chartered accountants and company secretaries and these finance professionals have a major role to play in setting up such instant money lending companies. They become directors and designate someone else as an operator,” Gupta told PTI.
Gupta, who had investigated some of these mobile applications for suspicious businesses, also agrees with the idea of blacklisting such financial professionals.
“The applications are developing in India And there are many software engineers here to develop it but the brain behind this business model is Chinese.”
Another expert said that while downloading the application these platforms get access to phone calls, photos and videos, which are used to blackmail borrowers.
“In some cases, these digital loan apps generate profits of up to 2,100 percent,” he said.
According to Gupta, these moneylenders rarely hire any recovery agent as they use photographs, videos and contacts to blackmail people.
“In order to recover their dues from the defaulters, these digital money lending operators send messages to the contacts accessed from the borrowers phones, use personal photographs and videos of the borrowers and in some cases morph the picture of moneylenders and Send them contact over phone,” Gupta said.
According to financial sector sources, dubious means of digital money lending platforms have taken many lives, especially during the height of the Covid-19 pandemic when people were in dire need of money, and unable to make payments on time. Were.
Police sources also noted various instances of people taking their own lives in this case, but did not disclose any numbers.
“The only way is awareness among people against these applications. No one should download them. Also, digital money lending platforms should be regulated and a policy should be formulated,” Gupta said.