Page 23 - Banking Finance April 2022

COVER STORY

DIGITAL

LOAN

MONSTERS

G ood news is in the air. India is celebrating arrival payment gateways and bank accounts linked to these

of immunizations against deadly corona virus.
companies and a large number of international transactions
have also occurred through bitcoins.
However, there is another bug from India's
northern neighbor that may create havoc if not
killed by the judicial medicine. Yes, it is digital loan microbe. The suspected, Zhu Wei alias Lambo was in charge of
operations for many instant loan app entities such as Aglow
Five suicides within a span of seven days in Telangana Technologies Private Limited, Liufang Technologies Private
supposedly connected to persecution by app-based unlawful Limited, Nabloom Technologies Private Limited and Pinprint
loan swindlers and bountiful moneylenders have elevated Technologies Private Limited. The matter being examined
worries about governing breaches being misused by online by the Telangana police and they are investigating more
fraudsters. Instant digital loan app scam got murkier when than a dozen payday loaning apps such as Loan Gram, Super
Telangana police force identified around 1,4000,000 Cash and Mint Cash. As per police sources, there are more
dealings worth Rs. 21,000 crore and detained a Chinese than 72 apps which are offering loans online without
national in correlation with app-based loan deception. appropriate authorizations from Reserve Bank of India and
According to the police department huge transactions have obligatory linkups with banks and registered NBFCs.
taken place during the last six months and executed over
Although these problematical digital loan applications are
About the author not solely made in China, Telangana Police department has
detected a huge number of such apps industrialized by the
Shivanand Pandit Chinese. As a result of series of suicides and mistreatment
Autonomous Finance and Tax Adviser of defaulters who had borrowed at inflated interest rates,
Margao, Goa numerous States of India have imposed restrictions on such

BANKING FINANCE | APRIL | 2022 | 23