The Indian government’s scrutiny of Chinese-linked apps has now affected homegrown companies. Loan apps PayU’s LazyPay and Kissht have been blocked following a notice from the Ministry of Electronics and Information Technology (MeitY).
However, sources suggest that the two apps may have been blocked due to confusion, a situation that has occurred in the past.
“When MeitY previously restricted Chinese loan apps, the bank accounts of Kissht and LazyPay were frozen. Their banking services were restored after they clarified to authorities that they had no links to China,” said one anonymous source.
Although some users can still download both mobile apps on Android, their websites display error messages even after multiple attempts. Entrackr confirmed this through several devices.
“The Kissht app and website are operational for our customers. We are aware that Google has been asked to remove a list of companies from the Play Store, including ours, but we are unsure of the reason for this notification. We will be meeting officials tomorrow to seek clarification,” a Kissht spokesperson said in a statement, adding that the company has no Chinese stakeholders.
The Economic Times first reported the development.
On Sunday, Ministry of Electronics and Information Technology (MeitY) reportedly blocked 138 betting apps and 94 loan apps with links to China, alleging their involvement in money laundering and posing a threat to India’s financial security.
Most short-term loan apps, including Indian ones, employ harsh measures, such as calling the borrower’s family and friends in case of default. This has led to extreme actions in some cases, where borrowers have resorted to suicide. “The government seems to have taken note of these harsh tactics and banned Kissht and LazyPay,” said another industry source who also requested anonymity.
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