Google sets new rules for Indian personal loan apps on the Play Store – Quartz India
Google is stepping up control of application loans in India.
In a July 28 announcement, Google said Indian loan applications will need to complete a “Personal Loan Application Declaration” form and provide supporting documents such as a license from the Reserve Bank of India (RBI) or proof that the app is only an intermediary platform for registered non-bank financial companies (NBFCs) or banks. These players should also ensure that the developer account name reflects the name of the associated registered business name in the statement.
The deadline to comply with these new India-specific standards and stay listed on the App Store is September 15th.
In January of this year, the Mountain View giant shut down several personal loan applications in India at the behest of RBI for violating loan repayment terms and user security policies. At least 118 apps have been removed, according to Srikanth L of CashlessConsumer, a consumer collective on digital payments. The crackdown came as a result of user complaints.
Users have expressed concerns about the high interest rates and short repayment periods with some of these apps. Play Store rules state that only apps with a refund after 60 days are allowed.
Those who took out loans through these apps also reported widespread misuse of personal data and fraudulent and illegal practices of physical threats and other forms of coercion for loan collection. Some harassed customers have even been driven to suicide.