Illegal loan apps: FM orders action; RBI to make ‘white list’

Noting concerns on increasing instances of money laundering, tax evasion and criminal intimidation by illegal loan apps, especially against low-income persons, the government has asked the Reserve Bank of India (RBI) to prepare a “white list” of legal digital lending apps to be permitted in app stores.

The RBI will also monitor money laundering through mule/rented accounts, take proactive action in cancelling dormant non-banking financial company (NBFC) licences and remove unregistered payment aggregators within a timeframe.

The decision was taken in a meeting chaired by Finance Minister Nirmala Sitharaman on Thursday, which discussed various issues related to illegal loan apps.