The Reserve Bank of India (RBI) has warned the general public of fake Small Loan App.
There have been reports about individuals/small businesses falling prey to growing number of unauthorised digital lending platforms/Mobile Apps on promises of getting loans in quick and hassle-free manner. These reports also refer to excessive rates of interest and additional hidden charges being demanded from borrowers; adoption of unacceptable and high-handed recovery methods; and misuse of agreements to access data on the mobile phones of the borrowers.
Legitimate public lending activities can be undertaken by Banks, Non-Banking Financial Companies (NBFCs) registered with RBI and other entities who are regulated by the State Governments under statutory provisions, such as the money lending acts of the concerned states. Members of public are hereby cautioned not to fall prey to such unscrupulous activities and verify the antecedents of the company/ firm offering loans online or through mobile apps. Moreover, consumers should never share copies of KYC documents with unidentified persons, unverified/unauthorised Apps and should report such Apps/Bank Account information associated with the Apps to concerned law enforcement agencies or use Sachet portal (https://sachet.rbi.org.in) to file an on-line complaint.
Reserve Bank has also mandated that digital lending platforms which are used on behalf of Banks and NBFCs should disclose name of the Bank(s) or NBFC(s) upfront to the customers.
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Where To Search for Authorised Small Loan App Or NBFCs?
The names and addresses of the NBFCs registered with the Reserve Bank can be accessed here.
Where To File Complaint Against Authorised Small Loan App Or NBFCs?
The portal for filing complaints against the entities such as unauthorised Small Loan App Or NBFCs can be accessed through https://cms.rbi.org.in.
Which small loan app are banned by RBI?
The Reserve Bank of India (RBI) has barred Asirvad Micro Finance Ltd, Arohan Financial Services Ltd, DMI Finance and Navi Finserv from sanctioning and disbursing loans for violation of multiple rules, including excessive pricing of loans.
Safest NBFCs in India, 2024
- LIC Housing Finance Limited.Â
- L&T Finance Holdings Limited.
- Aditya Birla Finance Limited.
- Cholamandalam Investment and Finance Company Limited.
- Mahindra & Mahindra Financial Services Ltd.
- Bajaj Finance Limited.
- Tata Capital Finance Service Limited.Â
- Shriram Finance limited.
Legal Solution If You Are Trapped In Fake Small Loan App
If you are also facing harassments of High-interest rates, Data privacy concerns due to the erroneous or wrongful download of Unauthorized small loan apps then you can avail the following legal remedies:
Report to the RBI
Submit a fraud report to the RBI if the fraud is worth at least Rs. 1 lakh. You can also report fraud if the Reserve Bank has directed you to, or if a central investigating agency has started criminal proceedings.Â
Report to the police
Visit the nearest police station or cyber cell and file a complaint. You can take a screenshot of the evidence and include details of how you came into contact with the app and the fraud.
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Google Removed 2,500 fraudulent small loan app from Play Store
The Finance Minister Nirmala Sitharam has stated in the Parliament that Google has removed 2,500 fraudulent small loan apps from Play Store between April 2021 and July 2022. As per their revised policy, only those apps are allowed on the Play Store which are published by regulated entities, or those working in partnership with REs.
How is the Indian Government Handling the Issue Of Fake Small Loan App?
Finance Minister Nirmala Sitharaman, replying to a query on steps taken by the government to address the increasing risks associated with fraudulent loan apps, in the Lok Sabha, said the government is engaged with RBI and other regulators or stakeholders to control fraudulent loan apps.
“The matter is also regularly discussed and monitored in the meetings of the Financial Stability and Development Council (FSDC). The objective is to remain proactive, maintain cyber security preparedness with constant vigil and take appropriate & timely action, to mitigate any such vulnerabilities in the Indian financial system,” the statement says.
