Winning Bizness Desk

Mumbai. The Union Home Ministry has asked law enforcement agencies to take strict action against the mobile app giving loans. The Ministry of Home Affairs has raised this issue in dialogue with the states and union territories. Significantly, due to the harassment of these Chinese-controlled companies and strict methods of extorting money, many incidents of suicide have come to the fore.

All states informed

The Ministry of Home Affairs has told all the states and union territories that this issue is having a serious impact on national security, economy and security of citizens. It said that a large number of complaints are coming from across the country that illegal digital lending apps give short term loans at high interest rates especially to the weak and low income groups. There are hidden charges as well. These companies harass and blackmail borrowers using confidential personal data such as contacts, location, photos and videos.

This is organized cyber crime

According to the Ministry of Home Affairs, the investigation has found that it is an organized cyber crime that is carried out through temporary emails, virtual numbers, accounts of unknown people, shell companies, payment service providers, API services, cloud hosting and cryptocurrency. The borrower is required to provide his personal information. The Ministry of Home Affairs says that these apps cannot be regulated by the RBI. These apps are reaching people through bulk SMS, digital ads, chat messengers and App Store. The Ministry of Home Affairs has said that these apps are targeting those people whose income is very low and they need money. Through these apps, those people are getting loans easily but after that the borrower is facing harassment. The harsh methods being used for debt recovery have claimed many lives in the country.