Cyberabad Police chalk out blueprint to check instant loan frauds

Cyberabad CP Sajjanar and officers of Hyderabad, Cyberabad and Rachakonda police commissionerates dealing with the instant loan app frauds held a coordination meeting with the RBI-appointed officials on Friday.

Hyderabad: In the wake of recent cases related to the instant loan scams, the Cyberabad Police have decided to come up with a blue print and chalk out long term targets to check the menace of such loan frauds. Cyberabad Police Commissioner VC Sajjanar and officers of Hyderabad, Cyberabad and Rachakonda police commissionerates dealing with the instant loan app frauds held a coordination meeting with the Reserve Bank of India-appointed working group for devising modalities to regulate the space of digital money lending, here on Friday.

During the meeting, the police officers apprised the RBI officials of the situation arising out of the operation of unscrupulous money lending apps and their predatory approach towards public in lending and recovering the loans.

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It was also highlighted that though the RBI had credible information of these usurious activities in the mid-2020, the same alert was not transformed into action to put surveillance and curb the fraudulent acts of these apps. It was also suggested to devise guidelines to streamline the digital lending by authorised Non-Banking Financial Corporations using various platforms.

People must be able to identify the genuine and legally authorised money lending agencies, and their lending process should be transparent and adherent to all the legal provisions, they said. It was suggested that the banks whose accounts are being used for money transactions by these fraudulent money lending apps must have a stringent mechanism for Know Your Customer and also have a periodic review of the activities to alert the law enforcement agencies of any suspicious transactions.

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