Google Removes Nearly 4,700 Illegal Loan Apps from PlayStore in Two Years
Google has taken strict actions against illegal loan apps on its PlayStore, removing almost 4,700 of them in a span of two years, ending in August 2023. Dr Bhagwat Karad, Minister of State (MoS) in the Ministry of Finance, revealed the latest data during a reply in the Rajya Sabha. The search engine giant reviewed around 3,500 to 4,000 loan apps between April 2021 and July 2022, resulting in the suspension or removal of over 2,500 loan apps. Similarly, from September 2022 to August 2023, Google eliminated over 2,200 loan apps from its PlayStore.
Google Updates Policy on Loan Apps, Emphasizes Partnership with Regulated Entities
To maintain a secure cyber environment, Google has updated its policy for loan apps on the PlayStore, allowing only those published by regulated entities or those working in partnership with regulated entities. This move indicates the search giant’s commitment to safeguarding users from fraudulent and illegal practices. Furthermore, the government actively collaborates with the Reserve Bank of India and other regulators to combat the prevalence of illegal loan apps.
RBI and Ministry of Electronics and Information Technology Team Up Against Fake Loan Apps
On October 9, 2022, the Reserve Bank of India (RBI) shared a list of 442 unique digital lending apps used by regulated entities to the Ministry of Electronics and Information Technology (MeitY) for whitelisting. This list was subsequently shared with Google. These collaborative efforts aim to bolster the regulatory framework for digital lending, as RBI has already issued regulatory guidelines in this regard. In the fiscal year 2023, there were 1,062 complaints against such lending apps, highlighting the need for stricter regulations.
How to Identify Safe and Trustworthy Digital Lending Apps
To protect themselves from fraudulent lending apps, users should follow these key principles:
1. Verify the Claims: Don’t trust fintech lending apps solely based on their claims of being part of the regulated ecosystem. Always cross-check and verify their authenticity.
2. Look for Downloads and Reviews: Genuine apps usually have positive reviews and a significant number of downloads. Avoid newly-established apps and opt for more established ones with a substantial user base.
3. Check for RBI’s Regulated Entities: Ensure that the app is either a regulated entity appointed by RBI or registered with one of these regulated entities. The list of regulated entities can be found on RBI’s official website.
4. Customer Care Mechanism: A trustworthy fintech app should have a well-organized customer care system in place. This ensures that users can easily reach out for assistance or lodge complaints.
By adhering to these guidelines and being cautious, users can protect themselves from falling victim to fraud and ensure a secure digital lending experience.
As the government and regulators continue their efforts to address the issue of illegal loan apps, Google’s strict actions reflect the importance of user safety in the digital lending ecosystem. The removal of nearly 4,700 illegal loan apps from the PlayStore serves as a significant step towards curbing fraudulent practices and maintaining cyber security preparedness.
Analyst comment
Positive news: Google Removes Nearly 4,700 Illegal Loan Apps from PlayStore in Two Years
Analyst view: Google’s removal of illegal loan apps demonstrates its commitment to user safety and cybersecurity. This action, coupled with the updated policy on loan apps, will help protect users from fraudulent practices. The collaboration between the RBI and the Ministry of Electronics and Information Technology further strengthens the regulatory framework, enhancing market stability.