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PIL in Madras High Court seeks ban on money lending apps sans RBI permit
The Public Interest Litigation(PIL) filed by lawyer S. Muthu Kumar highlighted the manner in which people were falling prey to online loan apps. Mobile lending apps are running without RBI permission. (Image for representative purpose)
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Updated: Jan 7, 2021, 04:18 PM IST
The Madurai bench of the Madras High Court has ordered notice to the Central, State Governments, Google, RBI among other institutions regarding the spate in cases of Online money lending at high interest rates via mobile apps. Bench of Justices MM Sundaresh and S Anandi had remarked that foreign money circulating without RBI permission, the methods of recovering the loans represented a sorry state of affairs.
Highlights
The PIL sought the intervention of the government authorities to ban instant loan apps available in the Google play store and other websites
It also pointed out that a special team must be forced to investigate the shell companies providing digital money lending
The case is expected to be taken up for hearing on February 3, 2021
Chennai: A Public Interest Litigation (PIL) filed in the Madurai bench of the Madras High Court has sought notice being issued to the Centre, state governments, Google, RBI among other institutions regarding the spate in cases of Online money-lending at high-interest rates via mobile apps.