Credits: Indian Startup News

‘Google, Apple app stores must not onboard illegal, unsafe apps’, says Union minister Rajeev Chandrasekhar

Applications for loans have become much more widely available in India in recent years on well-known stores like Apple’s App Store and Google Play Store. Many people have benefited financially from these apps, but there are worries about some lenders’ unethical behavior. By issuing a warning to tech giants Apple and Google, the Indian government has taken decisive action to regulate these lending apps in order to address these difficulties. Union Minister Rajeev Chandrasekhar is leading this effort.

Credits: Hindustan Times

Uncovering the Concerns:

Loan App Harassment: There have been reports of some lending applications using intimidation and harassment against borrowers. While advertising quick loans, these applications frequently demand high fees and use aggressive collection practices to get back the money lent. Borrowers have experienced severe anguish as a result of these activities, which has led to calls for regulatory action.

Apple’s Response: Cupertino-based Apple, a global tech giant, took notice of these issues and responded by removing several lending apps from its Indian App Store in July. This proactive step demonstrated Apple’s commitment to user safety and ethical app practices.

Google’s Actions: Google, another tech behemoth, also addressed these concerns by reviewing and removing over 3,500 personal loan apps for policy violations in 2022. Furthermore, they introduced stringent policies that restricted access to user data, reinforcing their commitment to user privacy and security.

The Government’s Advisory:

A Call for Accountability: Union Minister Rajeev Chandrasekhar has issued an advisory to both Apple and Google, urging them not to onboard unsafe or illegal lending applications. The government’s primary objective is to protect Indian citizens using these platforms, often referred to as ‘digital nagriks,’ and ensure their safety in the digital realm.

Tracking and Monitoring: The Indian government is actively tracking loan applications available on these app stores, with a specific focus on identifying and addressing those that pose risks to users. The government’s move reflects its dedication to maintaining a safe and trustworthy online environment.

Towards Whitelisting: The government has expressed its intention to collaborate with the Reserve Bank of India (RBI) to establish a whitelisting system. This system would permit only authorized and permitted loan applications to be accessible on these platforms. By doing so, it aims to create a robust framework that ensures users have access only to safe and reliable lending options.

Companies Involved: Apple and Google:

Apple’s Commitment to User Safety: Apple, renowned for its stringent app store policies, has a track record of prioritizing user safety and privacy. Their swift action to remove problematic loan apps from the Indian App Store in July 2023 exemplifies their commitment to maintaining ethical standards in the apps they host.

Google’s Ongoing Efforts: Google’s response to the issue involved not only removing violating loan apps but also implementing strict policies to protect user data and privacy. Their ongoing commitment to addressing this concern shows their dedication to creating a secure environment for Android users.

Possible Impact of the Move:

User Protection: The foremost impact of the government’s advisory is the enhanced protection of Indian users. By regulating and monitoring loan apps, it becomes less likely for unsuspecting individuals to fall victim to predatory lending practices. Users can trust that the apps they download adhere to ethical standards.

Ethical Lending Practices: The move encourages lending companies to adopt ethical practices. Those that engage in harassment or impose exorbitant charges may be deterred, leading to a more responsible lending industry in India.

Transparency and Accountability: With the introduction of whitelisting and transparency requirements, both Apple and Google are likely to adopt more stringent measures for app approval. This can lead to a more accountable ecosystem where financial apps are scrutinized for their legitimacy.

Trust in Digital Services: The government’s commitment to making the internet safe and trustworthy for ‘digital nagriks’ can foster greater trust in digital services. Users may feel more confident in exploring the vast world of apps without the fear of exploitation.


This change may have a positive effect on user protection, lending practices that are ethical, app approval processes that are more transparent and accountable, and user confidence in digital services. Such regulatory initiatives are essential in building a safe and reliable digital ecosystem for India’s population as it continues to embrace the digital age.