You are here: Home » Technology » News
YouTube takes on TikTok by plugging advertising into Shorts videos
Business Standard

Google asks loan apps to display link to partner bank, NBFC: Report

Google also said that the digital lending apps that fail to comply with the rules, will be deleted from the Google Play Store

BS Web Reports | Google | Google Play Store

BS Web Team  |  New Delhi 


After a series of meetings with the Reserve Bank of India (RBI) and the officials from the Ministry of Electronics and Information (MeitY), has asked the loan disbursal apps and credit aggregators on Play Store to display a link to the partner bank or the Non-Banking Finance Corporation (NBFC), according to a report by Economic Times (ET).

"For apps that remain non-compliant with the requirements past the deadline provided, as is done for any policy non-compliance, we have been taking necessary enforcement action as part of our ongoing policy compliance sweeps, including removal of apps from the Play Store," ET quoted a official as saying.

Google issued the policy on September 5 and gave the compliance deadline of September 19. It further said that the apps that fail to comply with the rules, will be deleted from the .

The centre has been putting pressure on Google, among other platforms, to make the digital finance ecosystem more transparent.

With the new changes, the apps will display the live link to the page of partner banks and NBFCs. The customers will be able to verify the connection by going to their pages. Also, the website of the partner banks will display the names of apps that are connected to them.

The rules are expected to bring down the menace of lending apps that defraud customers in lieu of offering instant credit.

On September 9, the also released a whitelist on the loan apps that are allowed to operate in India. It was done at the request of the .

According to Google, all the apps offering must connect customers with third-party lenders and must mention details such as the minimum and maximum time for repayment, interest rates and other costs in the metadata, the ET report stated.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, September 21 2022. 10:37 IST