A casual search on an app store is certain to throw up the names of a raft of apps that assure you that the money is merely a ‘click away’. Although the sweeping claim is sure to unnerve anyone with a rational mind, but the desperate ones are vulnerable to such tempting tactics.
Soon after the RBI MPC (monetary policy committee) announcement that led to repo rate hike of 50 basis points, Governor Shaktikanta Das — in a press interaction on Wednesday — flagged the concerns relating to such loan lending mobile apps.
“Most of these loan lending mobile apps are unregistered. It is, therefore, incumbent upon the users to check the authenticity of apps they are taking the loan from,” said Shaktikanta Das.
Upon being asked about the action the RBI is set to take against these apps, he said, “Whenever we get a user’s complaint against an unregistered app, we tell them to file a complaint with law enforcement agencies i.e., the police. And in several states, these agencies have taken appropriate action. And as far as irregularity from registered apps are concerned, the RBI takes action whenever it is brought to our notice,” he added.
It is noteworthy to mention here that early last year, Google removed 30 loan apps from PlayStore after RBI flagged the concern.
Apps such as Cashguru, Rupeeclick, 10MinuteLoan, Finance Buddha, among others were removed that time.
Word of caution
The banking regulator’s boss Mr Das warned the users against taking loan from unauthorised loan lending apps. “Customers should check on the RBI website whether the mobile app is registered with the RBI or not,” Mr Das said.
In case the app’s name is not included there, it implies the app is unauthorised and should be kept at bay.
While extending his argument, he also spoke about some shady agencies sending messages to loan seekers, prompting them to click on a particular message to avail loan instantly. “These agencies use the name of banks while sending these messages. Customers should refrain from clicking such suspicious messages,” he said.
Never share CVV or OTP
While giving a piece of advice to the borrowers, Mr Das said, “If the message (promising a loan) comes from a bank, it will never ask for a CVV, password or OTP. So, one shouldn’t click any message that calls for these details, and instead call up the bank branch to check the message’s genuineness.”
From time to time, banking regulator has been warning the members of public to beware of authorised apps urging them to file complaint against these apps on sachet.rbi.org.in.
in December 2020, RBI issued a statement warning the users, parts of which are reproduced here: “Consumers should never share copies of know your customer (KYC) documents with unidentified persons, unverified and unauthorised apps and should report such apps and bank account information associated with the apps to concerned law enforcement agencies or use sachet portal (https://sachet.rbi.org.in) to file an on-line complaint."