The Ministry of Electronics and Information Technology (MeitY) met with several digital lenders in relation to the blocking of their websites and on platforms such as Google Play Store on February 8.
Over the weekend, several domestic online lending platforms like Kissht and PayU-backed LazyPay were spiked after MeitY banned and blocked 138 betting apps and 94 loan lending apps that reportedly had Chinese links.
The blocking orders were given under Sec 69A of the Information Technology Act 2000 on an ‘urgent’ and ‘emergency’ basis.
Under Sec 69A of the IT Act, the Central government, represented here by MeitY, or any other specially-authorized officer, can issue blocking orders under specific grounds such as the interest of sovereignty and integrity of India, defence of India, security of the state, and so on.
“When blocking orders are issued under emergency sections then a review meeting has to be held within 48 hours. So these meetings are in context to that,” said a senior government official.
Several Industry executives have also met government officials individually to get more clarity on the development.
“We are meeting a couple of Meity and RBI officials to get more clarity on the matter. We are compliant in all respects and we are explaining and trying to understand more about this development,” said a digital lending startup founder whose app is mentioned in the list of apps to be blocked.
Kissht and LayPay did not share an official comment on the developments.
Several industry players also say that the ban is more to do with the platforms that are hosting the app like Google Play and Aptoide.
Moneycontrol was not able to ascertain the names of the digital lenders who attended the meeting.
Sources told Moneycontrol that Google is reviewing a Ministry of Electronics and Information Technology (MeitY) directive to block more than 200 loan and betting apps, which includes lending platforms like Kissht, PayU-backed LazyPay, and Ola Avail Finance.
Google declined to comment on the matter.
Some of the apps mentioned in the list are hosted in Aptoide, an online third-party marketplace for mobile applications. Lending app Kreditbee has said that this ban on the Aptoide link is a favorable outcome for the firm.
“Aptoide is a third-party App Store, with which we have no formal or informal partnership. We are speculating that it’s a proxy app on Aptoide, and investigating this further. Blocking of the Aptoide link is a favorable outcome for us," Kreditbee said in an official statement.
A partial list of the platforms in the MeitY directive has been accessed by Moneycontrol. It includes names such as Faircent, Indiabullshomeloans, Quick Finance, Lifecash, Moneywoods BuddyLoan, Cashtm, and RupeeRedee, among others.
