India’s IT Ministry has lifted the ban on seven high-profile lending apps including PayU’s LazyPay, Kissht, KreditBee and Indiabulls Home Loans, according to a person familiar with the matter, providing some relief to the fintech industry that has been reeling with immense scrutiny in recent quarters.
On Friday, the IT Ministry also lifted the ban on MPokket, BuddyLoan and Faircent, according to a copy of the order seen by TC. The ban was lifted after the firms justified that they did not have Chinese investors on their cap tables, the person said.
India has pushed to ban over 90 lending apps in recent weeks to protect the nation’s integrity and curb China’s influence in the South Asian market, the state-owned broadcaster Prasar Bharati has said.
The IT Ministry is concerned about the past and current presence of Chinese investors on the cap tables of some lending apps in India, the officials said, TC reported earlier this week.
Another concern is the rising reports of cybercrimes that are linked to China. The officials said the Ministry of Home Affairs has received reports of criminal activities involving Chinese firms that are tapping APIs to access Indian lending apps and obtaining and storing data of Indian consumers outside of the country, TC reported earlier.
“We thank the Government of India and MeitY for revoking the order to block Kissht,” a Kissht spokesperson said in a statement.
“The Government has shown unrelenting support in ensuring that credible and fully compliant apps such as Kissht continue to work towards greater financial inclusivity in the country. We have served more than 8 million Indians since 2017 and look forward to serving many millions more in the years forward. Kissht continues to provide hassle-free credit with the objective of doubling our customer base in 2023.”
