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Finance Minister Smt. Nirmala Sitharaman chairs meeting on “Illegal Loan Apps”
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....inance Minister Smt. Nirmala Sitharaman chairs meeting on “Illegal Loan Apps” <br>News and Press Release<br>Dated:- 9-9-2022<br><BR>Finance Minister Smt. Nirmala Sitharaman chairs meeting on "Illegal Loan Apps" Multiple steps outlined to prevent operations of such Illegal Loan Apps Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman chaired a meeting yesterday to discuss t....
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....he various issues related to "Illegal Loan Apps" outside the regular banking channels. The meeting was attended by the Finance Secretary, Ministry of Finance; Secretary, Economic Affairs; Secretary, Revenue, & Corporate Affairs (Addl. Charge); Secretary, Financial Services; Secretary, Electronics & Information technology; Deputy Governor, RBI; and Executive Director, RBI. The Finance Minister ex....
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....pressed concern on increasing instances of Illegal Loan Apps offering loans/micro credits, especially to vulnerable & low-income group people at exorbitantly high interest rates and processing/hidden charges, and predatory recovery practices involving blackmailing, criminal intimidation etc. Smt. Sitharaman also noted the possibility of money laundering, tax evasions, breach/privacy of data, and m....
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....isuse of unregulated payment aggregators, shell companies, defunct NBFCs etc. for perpetrating such actions. After detailed deliberations on legal, procedural & technical aspects of the issue, it was decided in the meeting that: * RBI will prepare a "Whitelist" of all the legal Apps and MeitY will ensure that only these "Whitelist" Apps are hosted on App Stores. * RBI will monitor the 'mule/r....
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....ented' accounts that may be used for money laundering and to review/cancel dormant NBFCs to avoid their misuse. * RBI will ensure that registration of payment aggregators be completed within a timeframe and no un-registered payment aggregator be allowed to function after that. * MCA will identify shell companies and de-register them to prevent their misuse. * Steps should be taken to increas....
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....e cyber awareness for customers, bank employees, law enforcement agencies and other stakeholders. * All Ministries/Agencies to take all possible actions to prevent operations of such Illegal Loan Apps. The Ministry of Finance will monitor the actionable points for compliance on a regular basis.<BR> News - Press release - PIB....