The Ministry of Home Affairs (MHA) has written to several states and union territories, requesting that strict action be taken against Chinese lending apps.
The MHA took this action in response to an increase in suicides caused by Chinese loan apps. The MHA stated in the letter that Chinese lending apps have had an impact on the country’s security, economy, and citizen safety. According to the ministry, the Chinese apps use loan borrowers’ personal data, such as contacts, location, photos, and videos, for blackmail and harassment. According to the ministry, low-income people are particularly vulnerable to Chinese lending apps because they provide quick loans.