Lazypay, Kissht and other leading digital lenders face banning apps and websites in India in new crackdown
In what appears to be another crackdown on digital lending apps in India, PayU’s LazyPay and Kissht, backed by Vertex Growth and Brunei Investment, are among the lenders affected by this latest government directive. MeitY recently blocked 138 betting apps and 94 lending apps with links to China and alleged involvement in money laundering. It is still unclear if digital lenders like Kissht and LazyPay are part of the same list.
A number of leading fintechs are facing a potential ban on their operations, after the Ministry of Electronics and Information and Technology (MeitY) included them in a list of digital lenders whose sites Web and apps are to be blocked in India, multiple sources with knowledge of the information told CNBC-TV18.
In what appears to be another crackdown on digital lending apps in India, PayU’s LazyPay and Kissht, backed by Vertex Growth and Brunei Investment, are among the lenders affected by this latest government directive.
MeitY recently blocked 138 betting apps and 94 lending apps with links to China and alleged involvement in money laundering. He sent a list of digital loan apps to be removed from the Google Play Store.
Google is currently evaluating the request, with plans to take action after its own review.
These companies are among those on the list of banned applications
In a meeting with officials from the Ministry of Electronics and Information Technology (MeitY) and the Ministry of Interior on Tuesday, Indian fintech lenders were assured that legitimate companies should not be worried.
Government officials informed the actors that they would hold a review meeting with stakeholders if necessary and request more information if needed.
In a statement to CNBC-TV18, Kissht confirmed that its app is currently working fine for customers across India and they have not received any official notification about the status of the app. “We are aware of the development and are seeking clarification from the relevant authorities. We hope this will soon be resolved without disrupting services for our existing users,” he added.
“Due to unavoidable circumstances, our website and app are currently unavailable through a few internet service providers. Please rest assured that we are working to resolve the issue,” LazyPay said in response to CNBC-TV18’s query.
Several fintech lenders CNBC-TV18 spoke to expressed shock and anger at the move, saying established players without Chinese connections found themselves considering a potential ban for “no justifiable reason,” and that harm their collections and the trust of their customers. .
“We will be looking to get this so-called ban lifted and things straightened out immediately when we meet with officials tomorrow,” said the founder of a digital lending app who did not wish to be named.
First post: February 6, 2023 10:09 p.m. STI