India To Control Which Lending Apps Are Permitted On App Stores in Latest Crackdown

India plans to mandate which loan apps are allowed on app stores in the country, the latest in a series of recent steps from the world's second largest internet market to crack down on sketchy and unethical lenders. From a report: The Reserve Bank of India, the country's central bank, will prepare a 'whitelist' of all legal apps and the nation's IT ministry will ensure that only approved apps are hosted on app stores, the Finance Ministry said in a statement. The central bank will also monitor 'mule' or 'rented' accounts for money laundering practices and review and cancel licenses of non banking financial institutions if they are found guilty, the Finance Ministry said Friday. Indian authorities in recent quarters have been clamping down on lending apps that levy exorbitant fees and use unethical means to collect the payments back. India's central bank said earlier this month that it was moving ahead with new guidelines for digital lending that will mandate firms to provide more disclosure and transparency to benefit consumers as well as restrict several business practices.

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