Fintech platform PayU’s buy-now-pay-later service LazyPay’s web site has been taken down following a discover from the Ministry of Electronics and Information Technology (Meity). PayU is owned by South African and Dutch group Naspers.
“The website has been blocked as per the order of the Ministry of Electronics and Information Technology under the IT Act, 2000,” LazyPay stated on its web site late on Monday.
It was not instantly clear why the IT ministry had issued such a directive.
Kissht, one other lending platform, was additionally unavailable for customers in India.
Also learn | Govt blocks 232 betting, mortgage apps linked to China, different international locations
Discover the tales of your curiosity
Chinese conglomerate Fosun owned greater than 17% stake in Kissht, however it was later divested to numerous Singapore authorities funds.“Due to unavoidable circumstances our Website and App are currently unavailable via a few Internet Service Providers. Please be assured that we are doing everything to resolve the issue,” a spokesperson for PayU informed ET.
Kissht cofounder Ranvir Singh informed ET: “We are reaching out to Meity to resolve this as soon as possible as lakhs of our customers who avail our services are impacted. This will impact their ability to use credit for productive purposes”.
“MeitY gets inputs from the Ministry of Home Affairs for blocking apps and sites. The MHA may have received inputs from various law enforcement agencies, including state police cyber cells, which could have got complaints against some of the apps,” the official stated, with out revealing the names of apps that had been banned.
The IT ministry didn’t reply to ET’s electronic mail searching for remark.
According to the founding father of a fintech agency, the event has triggered panic amongst lending platforms whilst others had but to obtain any official notification on the matter.
“It’s a matter of concern, of course. We are trying to figure out the reason and criteria for this,” the particular person stated, including that each mortgage repayments and new person additions would come to a halt for impacted platforms.
On Sunday, public broadcaster Prasar Bharati stated that the IT ministry had began the method of banning and blocking 138 betting apps and 94 mortgage lending apps, “which reportedly have Chinese links on an “urgent” and “emergency” foundation”.
“The move came after a communication from the Ministry of Home Affairs,” it stated.
Crackdown on lending apps
According to the most recent accessible information, between April 1, 2022 and November 30, 2022, 12,903 complaints had been acquired towards banks and non-banking monetary corporations (NBFCs) pertaining to digital lending apps and towards restoration brokers or harassment by restoration brokers.
In 2021, the Reserve Bank of India had constituted a working group on digital lending, together with lending by way of on-line platforms and cellular apps, to review all features of digital lending actions within the regulated monetary sector in addition to by unregulated gamers.
The group stated in a report {that a} majority of complaints had been about lending apps promoted by entities not regulated by the RBI.
The report additionally recognized main considerations associated to problems with mis-selling, breach of knowledge privateness, charging of exorbitant rates of interest, intrusive technique of restoration, lack of transparency and lack of grievance redressal mechanism.
Last month, the federal government knowledgeable Parliament that the RBI additionally issued advisories to state governments to maintain a test on “unauthorised digital lending platforms and mobile apps through their respective law enforcement agencies”.
In August final yr, Google had stated that it eliminated as many as 2,000 credit score disbursement apps between January and June for violating its Play Store insurance policies in addition to guidelines round cash lending by the RBI and legislation enforcement businesses, and on person suggestions.
In January 2021, Google had faraway from its Play Store 30 lending apps, together with LazyPay, that didn’t adjust to the RBI rules.
Source: economictimes.indiatimes.com