Govt issues warning, says installing unknown lending apps may compromise data - Hindustan Times
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Govt issues warning, says installing unknown lending apps may compromise data

By | Written by Amit Chaturvedi, Hindustan Times, New Delhi
Dec 17, 2021 07:29 AM IST

The warning has been issued by Cyber Dost, a Twitter handle managed by the Union ministry of home affairs. It has asked the borrowers to verify the authenticity of lending company from Reserve Bank of India’s website.

The central government has advised people to stay away from instant mobile application-based lenders, which could land them in trouble. An awareness campaign has been launched by Cyber Dost, the Twitter handle operated by the Union ministry of home affairs.

People have been harassed by online loan app firms over repayment with higher rate of interest.(Representative Photo)
People have been harassed by online loan app firms over repayment with higher rate of interest.(Representative Photo)

The government has posted some safety tips to be kept in mind before applying for loans. It has asked the borrowers to verify the authenticity of lending company from Reserve Bank of India’s (RBI) website. The RBI portal has all the information about companies.

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Further, the Cyber Dost Twitter handle has asked people to be vigilant before installing unknown applications on their mobile phone that provide loan. It said that doing so can put users’ confidential data and finances at risk.

It also asked the users to check the authenticity of the URL of the website before submitting documents or making payments.

These RBI too has been cautioning people against loans being offered by unauthorised digital platforms, mobile applications promising a quick and hassle-free process.

There have been reports of alleged harassment from debt collectors and a number of arrested were made from Delhi, Gurugram and Hyderabad last year when a multi-city loan app scam was unearthed.

The crackdown against such companies was launched after three cases of suicides, including that of a software engineer, due to harassment by such companies were reported in Telangana.

The central bank has made it clear that legitimate loans can be offered by banks, non-banking financial companies registered with RBI and entities which are regulated by the state governments.

The companies send link of cheap loans and low CIBIL score to lure people into their trap. The link has a provision to upload documents, which one done opens up the possibility of their misuse.

The government informed Parliament during the ongoing winter session this week that there are 600 fake loan apps in the country. The data is based on a report submitted by the RBI.

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