Indian Government’s Crackdown on Betting and Quick Loan Apps
In a recent move, the Indian government has taken stringent action against 232 betting and loan applications, including those originating from China and other countries. This crackdown aims to address concerns related to improper data storage practices and potential money laundering activities associated with gambling and quick loan apps. Interestingly, alongside Chinese apps, the ban also encompasses Indian ‘Buy Now Pay Later’ (BNPL) apps like LazyPay and Kissht.
Scope of the Ban
The Ministry of Electronics and Information & Technology (MeitY) spearheaded the ban, targeting 138 betting and gambling apps and 94 quick loan apps. The decision to ban these applications stems from the government’s assertion that they contain content detrimental to India’s sovereignty and integrity. An official familiar with the matter highlighted that the banned apps harbored material posing threats to the nation’s sovereignty and integrity.
Inclusion of Indian Apps
While several banned apps have Chinese affiliations, the ban surprisingly extends to Indian platforms such as LazyPay and Kissht. Currently, the government has not provided explicit reasons for banning indigenous apps like PayU’s LazyPay and Kissht, leaving users and industry observers in the dark regarding the rationale behind these actions.
Concerns Raised
Predatory lending practices, often associated with quick loan apps, have prompted regulatory intervention. These apps, under scrutiny, often provide instant loans to individuals in dire financial situations, leading to potential exploitation of vulnerable borrowers.
Impact on LazyPay
Following the ban, LazyPay’s website faced restrictions, accompanied by a notice citing compliance with the Ministry of Electronics and Information Technology’s directive under the IT Act, 2000. Although the website is now accessible, the functioning of the company’s app remains disrupted.
Customer Concerns
Affected customers of LazyPay have voiced their grievances on various social media platforms, expressing frustration over the app’s malfunction. The company, in response, has adopted a standardized approach, urging users to report issues directly.
The ban has left existing customers in a state of uncertainty regarding the fate of their outstanding loans and the possibility of resolution. The lack of clarity surrounding the ban has compounded concerns among borrowers, raising questions about the repayment and future dealings with the company.
