Telangana Police Say Online Instant Loan Apps Illegal, Will Take Action

Taking seriously various mobile app companies that offer instant loans, Telangana police said on Friday that at least 60 such loan applications were available on Google Play Store which are not registered or recognized by Reserve Bank of India as NBFC and their operations were illegal.

Telangana DGP office response comes in wake of unemployment the death of a technician by suicide in Hyderabad and an agricultural extension worker in Siddipet district in recent days, allegedly due to harassment and humiliation for reimbursement.

In a statement, the DGP’s office said the apps violated user privacy. “All applications have one strange thing in common in their methods. They appear to be built on an SDK which is believed to be provided by a foreign country. Their actions of calling friends and relatives of victims are also against Rule 3 (2) of the Information Technology Rules 2011 (Intermediate Guidelines), ”he said, encouraging the public. report any harassment from these applications to the police.

Investigating the suicide death of technician P Sunil (29) at his residence in Kismatpur on December 16, due to threats and blackmail from representatives of instant loan mobile app companies, police in Rajendranagar found out that he had taken almost Rs 2 lakh as loan from various instant loan applications.

The police amended the originally registered case by adding sections 420 (deception), 306 (incitement to suicide), 504 (intentional insult with intent to cause a breach of public order), 506 (criminal intimidation) of the IPC and article 67 of the IT law. .

The representatives of the applications had blackmailed and threatened Sunil by contacting his father and his wife, declared him in default and threatened to reimburse, police found.

Some of the apps he used for taking instant loans are 1) In Cash 2) Cash era 3). Cash lion 4) Mastermelon 5) Lucky wallet 6) Coco cash 7) Rupee Pus 8) Indian Loan 9) Credit finch 10) Tap credit 11) Ratheon Loan 12) Cash port 13) Smile Loan 14) Credit day 15) Cash today hui 16) Lucky Rupee 17) Go Cash 18) Snapit Loan 19) Loan Zone 20) Quick Cash 21) Panda rupees 22) Play cash 23) Dhani 24) Lazy Pay 25) Loan Tap 26) IPPB Mobile 27) Micredit 28) Quick Credit 29) Cashon 30) Rupees Plus 31) Rupee Now 32) Elephant Loan 33) Ant cash 34) Quick Money and 35) Alp Cash.

The police discovered that these app companies were obtaining sensitive data such as contacts, photographs, etc. from clients’ cell phones and used this data to lobby clients to secure repayment of the loan.

In addition to Sunil’s case, Telangana Police are currently investigating the suicide death cases of Eddu Srawan Yadav in Narsapur and Kirni Mounika in Siddipet, both due to alleged harassment caused by money lending applications.

Regarding the growing number of such cases, the DGP’s office clarified that the Reserve Bank of India’s rules would apply strictly to lenders online, offline, or from any bank.

On Friday, he said that under section 45-1A of the RBI Act of 1934, all non-bank financial companies are only allowed to operate under the regulations after proper registration. The RBI has said that all non-bank financial companies that are not registered under the law are not legal tender.

“Most of these online applications currently in circulation are not registered with the RBI and therefore do not have the authority to lend to them. Most of these apps have a Chinese style and don’t have a registered address or valid mobile number.

Regarding the operation of these apps, it is said that the interest rates on loans offered through these apps can go up to 1% per day and are usually higher than the interest rates offered by banks or companies. NBFC registered. “If the borrowers don’t repay on time, the interest will be doubled or tripled. These apps threaten to pay off non-performing borrowers, blackmail them and harass them online, ”he said.

About Chris McCarter

Check Also

BMWs can warn drivers of speed cameras and cameras at red lights

BMW’s ConnectedDrive system will soon be able to provide real-time speed camera and speed camera …

Leave a Reply

Your email address will not be published. Required fields are marked *