Financial regulator Nirmala Sitharaman issued strict instructions to stop the distribution of unauthorised loans through online apps
Sitharaman: These concerns include standardising KYC guidelines, ensuring that KYC records are compatible with one another in the financial industry, and streamlining and digitising the KYC procedure.
The RBI is among the financial regulators that Finance Minister Nirmala Sitharaman has instructed to take further action to stop the distribution of illegal loans via internet apps.
In light of the domestic and international macro-financial conditions, Sitharaman stated during the 28th meeting of the "Financial Stability and Development Council" (FSDC) on Wednesday that financial regulators should be proactive in maintaining continuous monitoring to detect emerging risks.
The International Financial Services Centre (IFSC), situated in GIFT City, Gandhinagar, is one of the world's premier international financial hubs. During the meeting, several topics, including ongoing inter-regulatory issues, were discussed.
These concerns include standardising KYC guidelines, ensuring that KYC records are compatible with one another in the financial industry, and streamlining and digitising the KYC procedure. In December 2022, the government informed Parliament that Google had removed over 2,500 fraudulent loan disbursement apps from its Play Store between April 2021 and July 2022.
Numerous borrowers have had their money stolen by these apps. Meeting attendees included the head of the RBI, the chief of SEBI, the chairman of IRDA, the head of the Indian Insolvency and Bankruptcy Board, and others.
