Crackdown on illegal loan apps: RBI to make 'whitelist' of legal platforms

MeitY will ensure only authorised apps are hosted on app stores; all ministries to take possible action

In a crackdown on illegal digital lending platforms, the Reserve Bank of India (RBI) will soon prepare a ‘whitelist’ of all legal applications (apps) that offer loans, and the Ministry of Electronics and Information Technology (MeitY) will ensure only these apps are hosted on app stores.

“The RBI will monitor the ‘mule/rented’ accounts that may be used for money laundering and to review or cancel dormant NBFCs (non-banking financial companies) to avoid their misuse. The RBI will ensure that registration of payment aggregators be completed within a timeframe and no unregistered payment aggregator be allowed to function after that,” the finance