New Delhi, Business Desk. In a report released by the Reserve Bank of India (RBI), it has been revealed that more than 600 mobile applications providing online or digital loan facility in India are fake or illegal. The Working Group of RBI has informed in a report that more than 600 apps that facilitate lending, loans or credit through online platforms and mobile apps are illegal. These apps, mostly used to dupe unknown people, are available on many app stores across the country.

While preparing a detailed report on digital loans and suggesting recommendations, the working group of RBI came to know about more than 1,100 loan or credit apps. These apps can be searched on the Internet or in app stores, using keywords like loan, instant loan and quick loan. According to the report, from January 01, 2021 to February 28, 2021, such apps were available on 81 app stores.

The RBI panel pointed out that a portal set up by the Reserve Bank under the State Level Coordination Committee (SLCC) to register complaints by the public has seen a significant increase in the number of complaints against digital lending apps. From January last year to the month of March this year, 2,562 complaints have been received. “Most of the complaints pertain to lending apps by RBI regulated entities such as NBFCs (Non-Banking Financial Company), unincorporated bodies and companies other than individuals,” it said in the report released.

Most of the complaints related to these apps have been received from Maharashtra. It is followed by states like Karnataka, Delhi, Haryana, Telangana, Andhra Pradesh, Uttar Pradesh, West Bengal, Tamil Nadu and Gujarat. Following a press release on December 23, 2020 by the Reserve Bank of India, the public was cautioned against unauthorized digital lending platforms and mobile apps and awareness was created to register complaints against such apps. There was an increase in the number of complaints in December 2020. During this, more than 35 percent of the total complaints were made in the month of December.

Edited By: Abhishek Poddar