The Indian government has announced that 87 unauthorised loan applications have been blocked under an order issued by the Ministry of Electronics and Information Technology. The directive was carried out using the powers granted under Section 69A of the Information Technology Act 2000, enabling authorities to restrict access to digital platforms that violate national regulations. The action was reported in the Lok Sabha by the Minister of State for Corporate Affairs, Harsh Malhotra.
The decision responds to growing worries about unregulated digital lenders known for bypassing Reserve Bank of India norms and using intimidating recovery tactics.
Many of these platforms have been linked to excessive interest charges and improper use of borrowers personal information.
By blocking these applications from public access, the government aims to prevent further consumer interaction with non compliant lending services. The move follows a wave of complaints describing harassment, misuse of data, and unethical financial practices by such operators.
Harsh Malhotra also noted that ongoing regulatory measures are being undertaken by the corporate affairs ministry. These include inquiries, financial inspections, and detailed investigations under the Companies Act 2013 to identify violations by companies involved in online lending. He emphasised that legal action is pursued whenever breaches of the Act are discovered.
The government is combining the technological enforcement powers of the IT Act with the legal framework of the Companies Act to monitor, restrict, and penalise unlawful financial entities. This joint strategy aims to promote a secure and transparent digital lending environment while ensuring that the growth of fintech does not compromise consumer rights. The latest crackdown is expected to discourage other illegal lenders from operating outside the law.
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