Government to lift ban on select digital lenders after review meeting
The government's move comes after it raised concerns about the "volume" and "nature" of consumer complaints against loan apps and their recovery practices.
The Indian government is likely to revoke its ban on select digital lenders that were part of the original ban list. The Ministry of Electronics and Information Technology (MeiTY) has reportedly sent the names of the selected fintech companies to be removed from the ban list to internet service providers and Google.
The decision to lift the ban was taken after the government conducted a review meeting with digital lenders earlier this week. The meeting allowed digital lenders to submit information about their investors, shareholding pattern, grievance redressal mechanism, and other relevant details.
The government's move comes after it raised concerns about the "volume" and "nature" of consumer complaints against loan apps and their recovery practices. Fintech lenders who could satisfy the government of their legitimacy have been removed from the ban list.
Also Read: Inter-Ministry Committee reviews takedown orders of fintech players amid regulatory concerns
The original ban list, comprising approximately 94 loan apps, was based on a request from the Ministry of Home Affairs and included popular loan apps such as LazyPay, Kissht, KreditBee, etc. The inter-ministry committee is now finalizing its recommendations, and the Secretary of MeiTY is expected to issue the final orders based on the committee's recommendations.
This development provides some relief to the affected digital lenders and their users, who have been impacted by the ban. The government's decision to lift the ban on select digital lenders indicates its willingness to support the growth of the fintech industry while ensuring that regulations are in place to protect consumers.
On the ban lift, Ranvir Singh, Founder, Kissht told CNBC-TV18, "We thank the Government of India and MeitY for revoking the order to block Kissht. The government has shown unrelenting support in ensuring that credible and fully compliant apps such as Kissht continue to work towards greater financial inclusivity in the country. We have served more than 8 million Indians since 2017 and look forward to serving many millions more in the years forward. Kissht continues to provide hassle-free credit with the objective of doubling our customer base in 2023"
First Published: Feb 10, 2023 1:54 PM IST
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