The indian government has recently taken a significant step to curb wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital financial fraud by blocking 87 loan applications that were operating illegally in India. The decision was officially announced in the Lok Sabha by Harsh Vardhan Malhotra, minister of State for corporate Affairs.
Reason for the Ban
These applications were found to be involved in:
Data Misuse – Collecting and exploiting users’ personal and financial data without proper consent.
Harassment – Pressuring borrowers with aggressive tactics for repayment, which included threats and intimidation.
Fraudulent Activities – Offering loans deceptively, charging hidden fees, or engaging in other unethical practices that harmed consumers.
The government stated that these apps were violating the trust and safety of users and posed a threat to the integrity of India’s wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital financial ecosystem.
Legal Basis
The action was taken under Section 69A of the Information technology Act, 2000, which empowers the government to block public access to online content that threatens security, public order, or privacy. The Ministry responsible for enforcing this directive was the Ministry of Electronics and Information technology (MeitY).
Implications
- Users who have downloaded or used these apps are advised to immediately uninstall them.
- Those affected by financial or personal data misuse may need to report the incidents to local authorities or consult cybercrime units.
- This move is part of a broader government effort to regulate fintech and wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital lending apps, ensuring that they comply with legal and ethical standards.
Government’s Stance
The government emphasized that while wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital loans provide convenience, the proliferation of fraudulent apps has become a serious concern. Authorities are now actively monitoring online platforms to prevent exploitation of users and to maintain the credibility of India’s financial technology sector.
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