India Cracks Down on Loan Apps: 87 Blocked for Illicit Lending

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In a move to curb illicit online lending, the Indian government has taken drastic action against 87 loan apps deemed non-compliant with regulations. The Ministry of Electronics and Information Technology (MeitY) has blocked these apps under Section 69A of the Information Technology Act, 2000, which empowers the ministry to restrict public access to online content.The information was revealed in a written response to a parliamentary question, which also highlighted the government's broader efforts to monitor and prevent illegal activities by non-functional firms. The Ministry of Corporate Affairs stated that actions are taken against companies involved in online lending, with 'suitable action' including striking off companies from the register. While the government has not defined 'shell companies' under the Companies Act, 2013, it continues to conduct regular inspections and compliance checks to ensure compliance with regulations. These efforts aim to protect consumers from predatory lending practices and maintain a fair business environment in the country.