The Ministry of Electronics and Information Technology (MeitY) has blocked a total of 87 illegal digital lending apps until now under Section 69A of the Information Technology Act, 2000 (IT Act, 2000), a reply to a Lok Sabha query has revealed.
For context, during the ongoing Winter Session of the Parliament, Samajwadi Party’s (SP) Member of Parliament (MP) Shri Lalji Verma enquired about:
- Â the current status of probes centred on online lending applications identified for regulatory scrutiny,
- and their expected outcomes
His query was part of a series of questions that also sought information about shell companies, as well as monitoring and compliance mechanisms for preventing illegal financial activities of ‘non-functional firms’.
The Reply Regarding Lending AppsÂ
Minister of State (MoS) for Corporate Affairs Harsh Malhotra responded to Verma’s questions in the lower house, remarking that MeitY has blocked 87 illegal digital lending applications so far after following the due process under Section 69A of the IT Act, 2000.
Malhotra added that regulatory action, including conducting enquiries, inspections of books of accounts, and investigations, is taken from time to time against entities that violate the Companies Act, 2013, including online lending apps.
RBI’s Centralised Directory for Digital Lending Apps
It is essential to note that the Reserve Bank of India (RBI) has instructed all regulated entities (REs) to submit details about their digital lending apps through the Centralised Information Management System (CIMS) portal by June 15, 2025.
This was part of the apex bank’s Digital Lending Guidelines, 2025, collating various directions and circulars on the subject.
At the time, the RBI said that customers could utilise the list available on the CIMS portal to verify claims of a lending application’s association with an RE. The list would also be updated regularly with details such as the addition or deletion of existing apps.
The central bank also prescribed finalised directions with respect to transparency in the aggregation of loan products.Â
Earlier in April 2024, in the draft guidelines, the RBI prescribed that platforms operating as Lending Service Providers (LSPs) should aggregate loan offers of multiple lenders and enable borrowers to compare and choose the best available option.
Additionally, the guidelines mandated the provision of information about all available loan offers, their key details, the display of products in an unbiased manner, and the demonstration of the willingness of lenders to offer loans.
Other Measures Of the RBI and the Finance Ministry At A Glance
The apex bank also mulled about establishing a Digital India Trust Agency (DIGITA) in April 2024 in order to maintain a public register of authorised online lending apps that could assist law enforcement officers in weeding out their illegal counterparts.
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