According to a person familiar with the situation, India’s IT Ministry has lifted the ban on seven well-known lending apps, including PayU’s LazyPay, Kissht, KreditBee, and Indiabulls Home Loans. This is welcome relief for the fintech sector, which has recently been subject to intense scrutiny.
According to a copy of the order obtained by TechCrunch, the IT Ministry also lifted the restrictions on MPokket, BuddyLoan, and Faircent on Friday. According to the source, the ban was lifted after the firms provided evidence supporting their denial of Chinese investors on their cap tables.
According to the state-owned broadcaster Prasar Bharati, India has pushed to ban over 90 lending apps in recent weeks to safeguard the integrity of the country and limit China’s influence in the South Asian market.
According to the officials, and as reported by TechCrunch earlier this week, the IT Ministry is concerned about the past and present presence of Chinese investors on the cap tables of some lending apps in India.
The increasing number of reports of cybercrimes connected to China is another cause for concern. According to the officials, the Ministry of Home Affairs has been made aware of criminal activity involving Chinese companies that are using APIs to access Indian lending apps and obtaining and storing consumer data from Indians outside of India, according to a previous report by TechCrunch.
Kissht acknowledged the lifting of the ban on its website and app in a statement. A spokesperson for Kissht issued a statement saying, “We thank the Government of India and MeitY for rescinding the order to block Kissht.”
“The Government has demonstrated unwavering support in ensuring that reliable and completely legal apps like Kissht continue to advance greater financial inclusion in the nation. Since 2017, we have provided services to more than 8 million Indians, and we anticipate providing services to many more millions in the years to come. Kissht’s goal for 2023 is to double the number of customers we serve by continuing to offer hassle-free credit.