India’s IT Ministry has lifted the ban on seven high-profile lending apps including PayU’s LazyPay, Kissht, KreditBee and Indiabulls Home Loans, according to a person familiar with the matter, providing some relief of the fintech industry that has been reeling with immense scrutiny in recent quarters.
On Friday, the IT Ministry also lifted the ban on BuddyLoan and Faircent, according to a copy of the order seen by TechCrunch. The ban was lifted after the firms justified that they did not have Chinese influence on their cap tables, the person said.
India has pushed to ban over 90 lending apps in recent weeks to protect the nation’s integrity and curb China’s influence in the South Asian market, the state-owned broadcaster Prasar Bharati has said.
The IT Ministry is concerned about the past and current presence of Chinese investors on the cap tables of some lending apps in India, the officials said, TechCrunch reported earlier this week.
Another concern is the rising reports of cybercrimes that are linked to China. The officials said the Ministry of Home Affairs has received reports of criminal activities involving Chinese firms that are tapping APIs to access Indian lending apps and obtaining and storing data of Indian consumers outside of the country, TechCrunch reported earlier.