Cong leader Venugopal urges Centre to act against illegal digital lending apps

Thiruvananthapuram, Apr 26 (PTI) Senior Congress leader K C Venugopal has urged the Centre to bring in strong and comprehensive legislation to curb the growing menace of illegal digital lending apps, citing rising cases of financial fraud, data theft and cyber harassment linked to such platforms.
    In a recent letter to Union Finance Minister Nirmala Sitharaman, the AICC general secretary called for declaring offences such as extortion, data breaches and online abuse by these apps as serious non-bailable crimes, according to a statement issued on Sunday.
    He also sought the constitution of a Joint Task Force involving the Finance, IT and Home Ministries to dismantle the network of such illegal operators and freeze their bank accounts.
    Venugopal stressed that digital lending platforms must be prevented from charging interest rates beyond the limits prescribed by the Reserve Bank of India, and that clear caps should be imposed on processing fees and interest rates.
    In the letter, the AICC general secretary further demanded a strict ban on apps accessing users’ personal data such as contacts and photo galleries, and called for stringent legal provisions to curb threats, abusive messages and coercive recovery practices by agents in case of loan defaults.
    Highlighting the need for swift grievance redressal, the Congress leader proposed setting up a dedicated helpline or portal to take action against such apps.
    He also suggested making it mandatory to include a nominee or emergency contact in loan applications to ensure transparency and awareness among family members.
    Venugopal urged the government to direct tech companies to ensure that only RBI-approved lending apps are listed on platforms such as Google Play Store and Apple App Store.
    He further called for the creation of an official website or app where the public can verify authorised digital lending platforms.
    He also sought regulation of misleading advertisements for such apps on social media and a ban on celebrities endorsing them.
    The Congress leader said he would raise the issue both inside and outside Parliament to ensure urgent legislative and enforcement action to protect citizens from exploitation.
    Venugopal’s intervention comes amid reported cases where harassment linked to loan apps has allegedly contributed to extreme distress, including suicides and cases of individuals going into hiding in Kerala and other parts of the country.
    He highlighted the urgency of regulating such apps in the wake of reports that threats linked to a loan app were connected to the suicide of BDS student Nithin Raj of Anjarakkandi Dental College in Kannur, who had also allegedly faced caste-based harassment on campus.

(This story has not been edited by THE WEEK and is auto-generated from PTI)