Google To Restrict Personal Loans Apps On Play Store From Today
Google is going to impose strict guidelines for personal loans apps listed on Play Store from today (31st May). The company will also revise its Personal Loans policy.
Google is implementing stricter guidelines for personal loan apps on the Play Store, effective from May 31.
The updated policy aims to protect consumers from deceptive or risky financial products and services offered by these apps.
As part of the new guidelines, personal loan apps will no longer be allowed to access sensitive user data, such as photos and contacts.
The policy applies to apps that directly offer loans, as well as lead generators and platforms that connect users with third-party lenders.
To ensure compliance, Google has requested personal loan apps targeting India to complete the Personal Loan App Declaration and provide supporting documentation.
If an app is licensed by the Reserve Bank of India (RBI) to provide personal loans, it must submit a copy of the license for review.
For apps that act as platforms facilitating money lending by registered Non-Banking Financial Companies (NBFCs) or banks, they must accurately disclose this role in the declaration.
Furthermore, the app’s description should prominently display the names of all registered NBFCs and banks it collaborates with.
Google emphasizes the importance of complying with state and local regulations in regions or countries where the app operates.
This includes incorporating specific disclosures required by local laws for financial products and services.
The decision to impose stricter guidelines on personal loan apps follows requests from the Indian government and the RBI in 2022 to enhance checks to curb the use of illegal digital lending applications in India.
Although Google is not directly regulated by the RBI, it has been engaged in meetings with the central bank and government officials and has taken steps to address the issue.
In fact, Google has already removed over 2,000 personal loan apps targeting India from the Play Store for violating policy requirements.
With these new restrictions, Google aims to protect users from potential risks associated with personal loan apps and ensure compliance with local regulations.
By limiting access to sensitive data, the tech giant seeks to enhance user privacy and security in the realm of financial services provided through mobile applications.
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