MeitY to lift the restriction on some digital lending apps
Ban on fintech companies for alleged illegal activities lifted, providing relief and promoting inclusivity in the sector.
10 February 2023
The Indian authorities banned various fintech organizations beneath Section 69A of the Information Technology Act 2000, due to allegations of unlawful money laundering and betting.
Some of the banned apps, together with LazyPay and Kissht, have claimed they have been included in the list via mistake.
The authorities have now determined to revoke the ban on these apps, imparting remedy to the digital lending quarter and underlining the government's commitment to financial inclusivity.
According to a report, MeitY had issued the ban under Section 69A of the Information Technology Act 2000, which offers the authorities the energy to block websites and apps if they are found to be attractive in illegal things to do or pose a chance to safety of the country. The ban was once an end result of an emergency request from the nodal officer of the home ministry, who mentioned the involvement of these apps in unlawful cash laundering and betting.
However, various of the banned apps have claimed that they have been not conscious of the ban and that their names were protected in the list through mistake. Some of the app operators stated that their app identify in the list of banned entities was a proxy link, and they no longer get hold of any communication from MeitY related to the ban.
In light of these developments, MeitY is now planning to revoke the ban on some of the apps, together with LazyPay and Kissht, after representations had been made by these companies. This has come as a large comfort to these digital lenders, who can now proceed to serve the Indian market.
Apply to Xartup Fellowship Program
Get ₹1.5 Crore Technical Funding
MeitY officials will be informing the app internet hosting structures like Google to revoke the ban, and the apps will be allowed to run as usual, in accordance with sources. The revoking of the ban has been welcomed with the aid of the industry, and many digital lenders have thanked the authorities for displaying aid and grasping closer to the sector.
In conclusion, the government's selection to revoke the ban on fintech companies like LazyPay and Kissht has been acquired positively by the enterprise players. These companies have been on the list of blocked websites, which have been accused of enticing in illegal cash laundering and posing a hazard to the economic security of the country. However, after representations were made by way of these companies, the Ministry of Electronics and Information Technology determined to evaluate the ban and revoke it. The revoking of the ban is anticipated to furnish alleviation to these digital lending structures and permit them to continue serving the country's citizens. The government's move additionally underlines its commitment to promoting economic inclusivity and assisting the boom of the fintech quarter in India.