Multiple Measures Taken To Curb Fraudulent Loan Apps, Says Mos Finance

(MENAFN- KNN India) New Delhi, Mar 18 (KNN) The government and the Reserve Bank of India (RBI) have strengthened measures to curb fraudulent loan apps and enhance consumer protection in the digital lending ecosystem, Minister of State for Finance (MoS) Pankaj Chaudhary said in a written reply in the Rajya Sabha.

The RBI had constituted a Working Group on Digital Lending covering online platforms and mobile applications, based on whose recommendations regulatory guidelines have been issued to streamline digital lending practices and ensure a safe and transparent ecosystem.

All regulated entities are required to comply with these norms, with adherence monitored through supervisory assessments and enforcement action initiated in cases of non-compliance.

To tackle illegal digital loan applications, the Ministry of Electronics and Information Technology (MeitY) has been issuing directions to block such apps under provisions of the Information Technology Act, 2000, following due process.

The government has also been engaging with internet intermediaries and messaging platforms to strengthen detection and removal of unauthorised and malicious lending applications, including those originating from offshore entities.

As part of preventive measures, the RBI has operationalised a Digital Lending Apps (DLA) directory on its website from July 1, 2025, enabling users to verify the authenticity of lending platforms.
The Indian Cyber Crime Coordination Centre under the Ministry of Home Affairs has also been actively analysing such apps, while providing avenues for public reporting through the National Cybercrime Reporting Portal and helpline number 1930.

Further, complaint mechanisms such as the SACHET portal and coordination through State Level Coordination Committees (SLCC) have been put in place to address grievances related to illegal financial activities.

Awareness campaigns through SMS, radio and digital platforms, along with RBI's e-BAAT programmes, are being conducted to educate users about cyber fraud risks and safe digital practices.

The MoS Finance said that while law enforcement remains primarily the responsibility of states and Union Territories, the central government continues to support their efforts through advisories and capacity-building initiatives aimed at strengthening the response to cyber-enabled financial crimes.

(KNN Bureau)

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