7 years imprisonment and fine of Rs 1 crore, instant loan apps are in trouble! Government took a big step

Unregulated Loan Apps: The Central Government has made a new proposal, under which giving loan or doing any kind of transaction without the approval of the Reserve Bank (RBI) or other regulatory agencies will be considered a non-bailable offense and will be punishable with a fine of up to ten years in jail. It has also been said. The objective of the government behind this is to protect the interests of the consumers and to stop the activities of giving irregular loans.

The RBI working group on digital loans, while presenting its report in November 2021, had suggested several measures including introducing a law to ban irregular loans. In these, it was said that restrictions should be imposed on those who are active in public lending without registration in the Reserve Bank or other regulated bodies. However, those who took loans from their relatives or acquaintances were not included in this.

There will be punishment for violating the law

The government said in its proposal that if someone gives a loan digitally or in any other way in violation of the law, he can be punished with imprisonment of at least two years, which can be extended up to seven years. Along with this, a fine ranging from Rs 2 lakh to Rs 1 crore can also be imposed. The bill also said that if the lender, the borrower or the assets are located in multiple states or union territories or the total amount is so large that the public interest is significantly affected, the investigation will be handed over to the CBI.

Instant loan app becomes a headache

In fact, in the last few years, there has been a rise in the number of instant payments through mobile. These often have high interest rates, many undisclosed charges attached, and loan recovery is also done aggressively. Many times a person becomes so upset by all this that he commits suicide. In view of this, from September 2022 to August 2023, Google has removed more than 2,200 such apps from its Play Store.

Also read: Don’t mess with your health! Now expired food items will not be sold, FSSAI has brought a new rule