The letter states that “illegal digital lending apps are driving citizens to suicide due to harassment, blackmail and harsh recovery practices by loan firms”.
The ministry notes that “many of these may not be entities regulated by illegal lending apps. reserve Bank of India And extensively using SMS, digital advertising, chat messengers and mobile app stores.”
It said, “The borrower shall have to provide mandatory access to the contacts, location, phone storage to avail the loan. Misuse of this data is to harass and blackmail the citizens with distorted images and other derogatory images and other derogatory practices located by the recovery agents located to harass and blackmail the citizens.” practices are used. India Also violating RBL’s Fair Practices Code overseas.”
In August this year, the RBI said that disbursement of loans and collection of repayments should be executed only between borrowers and entities regulated by it, and no third party should be involved in the process.
The Ministry of Home Affairs has observed that the issue has seriously affected ‘national security, economy and civil defence’ and asked the states and union territories to seek help. National Cyber Crime Forensic Laboratory On loan app analysis and cryptocurrencies. “It turns out that this is an organized cyber crime executed using disposable emails, virtual numbers, mule accounts, shell companies, payment aggregators, API services (account verification, document verification), cloud hosting, cryptocurrency ”