The Reserve Bank of India (RBI) circulated a list of apps used by its regulated entities, with the Ministry of Electronics and Information Technology (MeitY). Apple App Store and Google Play were given a list of lending applications that are permitted to remain on their platforms.
The Reserve Bank of India, majorly known as RBI, is central bank for India and a regulatory body which is responsible for supervision of the Indian banking system. It is under the ownership of the Government of India’s Ministry of Finance. It takes care of the issue, control, and maintenance of supply of the Indian rupee.
And in turn MeitY circulated the same with intermediaries offering application stores, Finance Ministry conveyed to the Parliament on 7 February. The companies were asked to make sure only the applications which are in the list are supposed to be hosted on app stores.
In the wake of this, MeitY furnished an order to block betting apps and a host of loan app which are alleged to have Chinese links. Accessing a list of 58 apps like these, google decided to review the order of the government to execute on its app store.
In the Parliament, the Finance Ministry said that the central bank has also furnished a master circular, under which financial institutions and banks have been guided to follow fixed customer identification procedures for monitoring transactions of suspicious nature and opening of a bank account to avoid its exploitation for money laundering.
Additionally, the RBI has furnished lending guidelines in 2022 in the month of September, which suggests measures involving due diligence of (LSPs) loan service providers, the direct disbursement of loan to the bank account of borrower from the bank account of the lender without any third-party account or any pass-through/pool to steer clear of layering.
An investigation was initiated by The Directorate of Enforcement (ED) under PMLA in various cases where the proceeds of crime have given rise to and acquired by entities/accused persons via illegal loan applications.
As of the current day, in these cases, criminal proceeds of around Rs 2,116 crore have been recognized, Rs 859.15 crore out of which has been either attached or frozen or seized under the provisions of PMLA, said the finance ministry. Additionally, under section 37A of the foreign exchange management act, 1999 – assets Rs 289.28 crore have been seized.
Plethora of well-known fintech firms might face a potential ban on their operations after MeitY incorporated them in a list of lenders on digital platforms whose applications and websites were to be blocked/banned in India.
Vertex Growth, PayU’s LazyPay and Brunei investment-backed Kissht are amid the lenders who are affected because of this latest instruction from the government. Recently MeitY blocked 94 loan apps, and 138 betting apps which were alleged to have links with China and allegedly involved in money laundering.
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Under the PMLA Act 2002, The Enforcement Directorate (ED) has been assigned to curb money laundering.
The Central Bank’s Master Circular Includes:
- KYC – Know-your-customer, norms
- Standards for Anti-Money Laundering
- Financing of terrorism to be fought
- Obligation of financial institutions and banks under Prevention of Money Laundering Act (PMLA), 2002.
In a clampdown on illegal digital lending platforms, the (RBI) Reserve Bank of India will shortly prepare a ‘whitelist’ of all legal applications which offer loans, and the Ministry of Electronics and Information Technology (MeitY) will make sure that only these apps are hosted on app stores.
The conclusion was reached in a meeting on Thursday chaired by Finance Minister Nirmala Sitharaman.
The steps by the government have been taken after illegal loan apps hosted on app stores were found offering micro credit to the low-income groups at exorbitant interest rates and to pandemic-hit people, alongside processing charges, hidden charges, and exercising predatory recovery practices.
Sitharaman also recognized the possibility of tax evasions, money laundering, breach of data, and the exploitation of uncontrolled payment aggregators, defunct NBFCs and shell companies for committing such actions, said the finance ministry.
As per the suggested set of measures, the (MCA) Ministry of Corporate Affairs will spot shell companies that can be used for drawing off funds, and to prevent their misuse deregister them. All government agencies and ministries have been ordered to take suitable measures, in their area, to avert illegal loan apps from functioning.
“Measures should be taken to grow cyber awareness for customers, law enforcement agencies, bank employees, and other stakeholders. All ministries/agencies must take all possible measures to prevent functions of such illegal loan apps,” said the finance ministry.
The meeting had other attendees like the Finance Secretary T V Somanathan, Revenue Secretary Tarun Bajaj, Economic Affairs Secretary Ajay Seth, MeitY Secretary Alkesh Kumar Sharma, Financial Services Secretary Sanjay Malhotra, and senior RBI officials.
Recently the RBI advocated that the Centre must frame a law to ban unregulated lending activities to safeguard borrowers from predatory lending, blackmail and harassment.
In its regulatory framework dated August 10, the RBI made sure that loan disbursements are only to be executed by entities inspected by it or those permitted under the law. It also stated that it is imperative for digital loans be credited directly to the bank accounts of the borrowers and not via any third party.
From January 2020 to March 2021 the RBI had received 2,562 complaints against digital lending apps. Over 600 unregistered lending apps were found by the banking regulator which were available on Google Play Store.
last week six premises of online payment gateways were raided by Enforcement Directorate (ED) such as Paytm, Razorpay, and Cashfree over alleged irregularities in instant app-based loans. (Bengaluru)
A list of Betting apps Banned By RBI- 138
- Betway – Live Sports Betting
- MELBET
- AndarBahar Poker
- Silver Luck
- Big Winner – Lucky Wheel
- Betfair Live Line
- Zodiac Casino
- SuperDraft Sportsbook – Prizes
- Betstamp – Sports Betting Hub
- Live Blackjack (Blackjack 21: Live Casino game)
- Onside Sports: Scores, Live Od
- Block Online Gambling – Gamban
- Teen Patti Lucky Gold
- Fun88
- Betindi
- PokerStars: Texas Holdem Games
- Live Baccarat
- Jackpot City Casino
- Spin Casino
- Bambet
- Spin for Cash!-Real Money Slot
- Tivit Bet App
- betM – Sports Betting Tool
- Teen Patti Romio
- Teen Patti Kash
- Casumo Online Games: Extended
- Zet Casino
- Casino Real Money: Win Cash
- Play To Win: Win Real Money
- Europa Casino
- Casumo Casino
- Slots Machines – Vegas Casino
- DAFABET – 2022
- Cricket: Sports Betting
- Bet O Bet-Live Sports Betting
- Sports Betting™ the Sportsbook
- Match Book App
- Casumo Slots
- William Hill App
- 3 Lucky Casino
- 3patti Guide
- SI – Betting tips
- BetQL – Sports Betting Data
- NEO.Bet App
- Betvisa
- Pure Win
- Bet Analytix
- Betobet
- Blackjack Live
- Lagai Khai Pro
- Rich Club
- Shangrila
- Ladbrokes odds & tips
- Live Bet Zlive
- Betting United: Betting Tips
- Bingo Crown – Fun Bingo Games
- BetWiser – Best Betting Odd
- SattaMatka Fix Game
- Cashman Casino Las Vegas Slots
- Parimatch: Live Sports Betting
- BettingPros: Sports Betting
- Enchanted Island
- Bet Winner-Popular online game
- Roulette Online
- betM – Sports Betting Tool
- London Betting Tips
- Royal Panda
- 20Bet
- TipsterMan – Betting Tips
- Royal Vegas
- Come On
- myVEGAS Bingo – Bingo Games
- Satta King: Satta Matka Result
- Best Bet Casino™ Slot Games
- Grand Mondial
- Bons
- Divine Fortune 2
- Bingo Party – Lucky Bingo Game
- Football Betting Tips & Odds
- Win2Win
- Bet On Sports
- Anubis Treasure
- PariPesa App
- BetNetix: Football Betting
- DoubleU Casino™ – Vegas Slots
- Bet On Sports
- Lotus 365
- Betting Tips
- Scores And Odds Sports Betting
- Babu88
- Zodiac Casino
- 888STRAZ
- CRICKET ΒΕΤЅ | All Cricket Βеt
- Record Trade
- WagerLab Bet on Sports & Props
- 4rabet App
- VegasInsider Sports Betting
- Lottabet.
- Genesis Casino
- Lucky slots -casino VIP
- Teen Patti Dhamal
- INDIBET
- BETUP – Sports Betting Game
- OPPA 888
- Lagai Khai Pro – Betting Game
- Betting Tips
- 1xBet: sports betting
- Happy 3Patti
- Sports Betting Picks & Tip App
- Vegas Royal
- Videoslots Fun
- Rummy
- Betkwiff
- Trueflip
- Sports Betting for Real
- Wheel of Fortune
- Teen Patti Guide
- BetVictor Bet
- Papel Betting Tips
- Lucky Star Slots-Vegas Casino
- Teen Patti Bhoomi: Patti Poker
- Spin casino: Slot machines
- Avia Pilot
- Virtual Sports Betting Predict
- BetMines Betting Predictions
- Super Slot – Win Cash
- Golden Slots
- Rummy
- Ludo Vungo
- Grand Mondial Casino
- Games
- Sports Betting Game – BETUP
- 22Bet: Live Sports Betting
- Pikkit: Sports Bet Tracker
- RABONA
- Crash Rocket Gambling
- Megapari
- MostBet
Last month over 2,000 personal loan apps had been removed by Google — or greater than half of the total apps in the category — since the beginning of the year, from the Play Store, mainly because of user safety concerns.
Rajya Sabha was informed last month by the finance minister that the government is initiating action against questionable digital loan apps, including those which originate from outside the country, and also against Indians who help in setting them up. Sitharaman said many of the questionable applications were arising from one particular country, without naming or pointing out China.
“This decision will protect millions of innocent people who fall prey to unregulated, unregistered, and illegal loan sharks and make sure that Indian payments systems are not accessed by international fraudsters, said chairman, Vishwas Patel, of Payments Council of India, a representative body of regulated non-banking payment players.
Key decisions of RBI
- RBI is supposed to monitor ‘mule/rented’ accounts that might be used for money laundering
- To cancel/review dormant NBFCs to avoid their exploitation
- Measures should be taken to improve cyber awareness for bank employees, customers, and law enforcement agencies
- All agencies/ministries to take all possible measures to stop functions of illegal loan apps
- To ensure that no unregistered player is allowed to function and registration of payment aggregators is completed within a certain timeframe
