The Indian officials are now centering several fintech apps linked with China after banning nearly 200 mobile apps. According to anonymous sources, the officials are currently under the process to prohibit several app-based lenders linked with China. The Union Government (1) is compiling the list entities for the ban.
As per sources, there are several potential involvements of data compromise from lending apps. The results could be grave as it involves the financial data of users. The government aims to prevent Chinese companies from accessing data to protect users’ privacy and potential security threats.
The data users provide to fintech firms are more sensitive than what one shares on social media networks. These apps take the user’s data regarding its income tax, Aadhaar card, and more. The Government of India aims to prevent Chinese companies from accessing users’ data to protect their privacy and security risks.
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The central bank does not control digital entities as there is no involvement of public deposits. However, RBI can alert the central and state government it notices anything suspicious. It falls under the gray area of regulatory. Though, it may get involvement via surveillance.
According to the estimates, between 2017 to 2022, the growth rate in credit demand is between 3.73%. Due to the COVDI-19, there is an unusual surge in the Indian lending space.
There are considerable opportunities in the SME lending market of India. As per the IBEF May 2019 report, the NBFCs public deposits spiked to 4.95 billion USD in 2019 from 293.78 million in 2019. It has registered a CAGR of 36.86%.
There are several potentials of NBFCs in India. However, their lending habits were undergoing several flops last year. It is due to the reckless expansion of credit. They are now facing a liquidity crisis because of external development. Investors are now also taking a step back to measure their moves as the socks are doing poorly.
Author: Rucha Joshi
Source : https://timesnext.com/goverment-turns-focus-on-fintech-apps-with-china-links/
Date : 2020-09-22T06:09:16.000Z