#Apptrap review code#

There are no lengthy paper work and everything was seemingly quite simple.Īlthough the loans also came in through rather swiftly, the borrowers were charged exceptionally high processing fees besides additional hidden charges along with a whopping 36 per cent interest which was deducted at the time of loan disbursal. Such instant mobile apps promised short-term, collateral-free loans for between seven and 15 days. Thanks to the Jan Dhan Yojana, a large share of the population have access to a savings account.īut for those whose financial condition had worsened, the made in China mobile loan apps seemed to be an easy option for many reasons. While some 70 million of these jobs recovered after the lockdown lifted, many were left with no money. If reports are to be believed, an estimated 121 million people lost their jobs and close to 80 per cent of the working class in India, experienced loss of income. While the income of the mid-market segment was hit by 17% and the affluent segment's income suffered the least staying 10% below the pre-COVID levels, incomes of the mass-market or low-income segment (those with an income below ₹20,000) were hardest hit. Various surveys undertaken have concluded that perhaps the worst affected are those in the low-income bracket. Particularly, financial stress has hit the working population in distinct ways and India is no exception. RBI 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.Īn adverse impact of the global pandemic COVID-19 is that many economies world-wide have shrunk and unemployment is on the rise.

It had even warned that any violation by banks and NBFCs (including NBFCs registered to operate on ‘digital-only’ or on digital and brick-mortar channels of delivery of credit) will be viewed seriously.Īmidst reports of 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, the RBI again in December last year cautioned consumers never to share copies of KYC documents with unidentified persons, unverified/unauthorised Apps and they should report such Apps/Bank Account information associated with the Apps to concerned law enforcement agencies or use its Sachet portal () to file an on-line complaint.

#Apptrap review code#

Last June the Central Bank had cautioned Banks and Non-Banking Financial Companies (NFBCs) making use of the Digital Lending Platforms to adhere to RBI’s extant Fair Practices Code (FPC) and Outsourcing Guidelines. Its terms of reference among others includes recommending a robust Fair Practices Code for digital lending players, insourced or outsourced measures for enhanced Consumer Protection, robust data governance, data privacy and data security standards for deployment of digital lending services. The WG which has to submit its report within three months would identify risks posed by unregulated digital lenders and suggest regulatory measures. Nonetheless, it requires sustained efforts in the right earnest to keep them under check.Īgainst the backdrop of a preliminary probe into the financial transactions of the online loan apps which has revealed that there have been 1.4 crore transactions worth nearly Rs 21,000 crore, carried out during the last few months, the setting up of a working group (WG) by the Reserve Bank of India on 13 January this year, to evaluate digital lending activities is laudable

The crackdown against instant money lending apps firms, launched across several of our cities, after six cases of suicides, due to harassment by such companies were reported in Telangana since December 2020, is timely.