Following an ‘abrupt’ ban on several digital lenders, the Ministry of Electronics and Information Technology has issued an order to app and website hosting platforms to restore access to some of the entities.
The development comes days after several fintech executives met with MeitY officials seeking clarity, following which they were asked to submit multiple documents detailing their shareholding structure, compliances, and other information.
Several of these companies have now received verbal confirmation from the officials that their platforms were being restored, even as app stores and internet service providers were being directed to unblock the websites, apps, or versions on third-party app marketplaces.
Ranvir Singh, Founder at Kissht, and Rajat Gandhi, Founder and CEO of Faircent, two of the apps that have been restored, confirmed the development.
“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,” Ranvir said, adding that Kissht expects to double its customer base this year.
As per a Livemint report, the government has issued a list to internet service providers to restore the websites, apps, or third-party app versions of select digital lenders. This list includes Kissht, PayU-backed LazyPay, Buddy Loan, Indiabulls Home Loans, and Faircent.
Versions of the KreditBee and MPokket apps hosted on Aptoide, a third-party app store, are also on the ‘unblock’ list.
The ministry had on Sunday ordered a ban on 94 lending apps, including PayU-backed Lazypay, Kissht, Faircent, PayRupik and Quikfinance, and 138 betting apps, either for their ‘Chinese links’, complaints of strongarm collection methods, or other compliance issues.
The Meity ban list also included versions of KreditBee, Ola’s Avail Finance, PayMe, mPokket, RupeeRedee and True Balance listed on the third-party marketplaces.
Several of these companies shrugged off their association with these marketplaces, claiming that the entities bearing their names were “impersonators” or “proxy apps”, and that the domains on the list had nothing to do with them.
Some of the restored third-party apps, though, share the same developer as the main apps.
A fintech industry source said the government was wary of Chinese fund flow into the system via new-age digital lending apps, but other platforms were also pulled up for not adhering to proper compliance standards “despite warnings”.
(This is a developing story)
