The Bihar police have approached the Ministry of Electronics and Information Technology (MeitY) requesting the ban of over 100 gambling, gaming, and illegal loan lending apps. The police allege that these apps are involved in money laundering activities and pose potential threats to the financial security of the nation.
Confirmation of violation of IT Act
Nayyar Hasnain Khan, additional director general (ADG) of the Economic Offences Unit (EOU), confirmed that these apps violate Section 69 of the Information Technology (IT) Act. The apps are said to contain materials that are prejudicial to the sovereignty and integrity of India. Complaints of extortion and harassment have been received from individuals who borrowed small amounts through these loan lending apps.
Modus operandi and impact on borrowers
According to Khan, these apps access or hack customer data while providing digital loans. They charge exorbitant interest rates and harass borrowers by sending obscene materials to contacts on their phone. Complaints against these apps and individuals linked to them have been reported in various locations in Bihar.
Government actions against banned apps and lending platforms
The ban on these apps comes amidst the Ministry of Information and Broadcasting (MIB) issuing advisories to media and online platforms against carrying advertisements of betting platforms. India has previously banned apps for national security, data privacy, and harmful content concerns. In February 2023, MeitY was directed by the Ministry of Home Affairs to block access to more than 138 betting and digital loan apps with Chinese links. The rise of illegal lending apps, often linked to China, has raised concerns for the government, as cases of harassment have led to tragic outcomes. Efforts have been made to curb illegal lending, including a white list of legal lending apps provided by the Reserve Bank of India (RBI) and directives to tech giants Google and Apple to remove non-compliant apps from their app stores. However, illegal lending apps continue to operate, prompting recent actions by Apple to delist such apps from the India App Store.
