Google will block loan apps from accessing user data and contacts on Android

(Image: Moneycontrol)

Google has updated its Play Store policies support page regarding financial service apps on Android.

Effective May 31, 2023, personal loan apps will no longer be allowed to access users' contacts and photos. The company is also introducing a strict requirement for all loan apps to submit additional country-specific documentation to prove legitimacy.

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In India, Loan apps will now need to complete the Personal Loan App Declaration and will need to provide additional documentation. If the app is registered with the Reserve Bank of India as a loan provider, then Google will need a copy of their licence.

If the app does not directly give loans but acts as an intermediary between the user and bank, they will need to accurately disclose that in the app's description, along with all the names of the registered NBFCs and banks they are partnered with.

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Apps that provide personal loans will be prohibited from accessing the smartphones' storage, contacts, location history, phone numbers and images or video.

Google also said that they will not allow apps, “that mine cryptocurrency on devices. We permit apps that remotely manage the mining of cryptocurrency.”