Fraud in the name of giving loans will stop: Government is bringing a law

The illegal activities of apps and agencies that cheat innocent people and take huge amounts from them in the name of giving loans are now going to stop. The government is bringing a law to take strict action against those who cheat in the name of giving loans. The name of this proposed law is Banking of Unregulated Lending Activities (BULA), which may soon get the approval of the cabinet. After the implementation of this law, if a person does business of commercial lending personally or through digital means, it will be mandatory to take permission under the State Bank of India Act 1955 or any state money lending law. Those who do not take permission may also have to face heavy fines and imprisonment. Two to seven years of imprisonment and a fine of Rs 2 lakh to Rs 1 crore have been proposed. Loans taken from relatives have been excluded from the scope of this proposed law. The special thing about the proposed law will be that there will be a database of loan granting agencies or applications approved by the government agency, by going to which it will be possible to check whether the person from whom you are taking a loan is authorized to do the business of lending or not. The government is bringing this law to ban digital lending applications mainly operated from China and other countries. Apps operated from China started blackmailing people by giving loans, due to which many people even committed suicide. On the recommendation of the RBI and the Finance Ministry, many such apps were banned, but a permanent solution could not be found. Keeping this in mind, a draft of this proposed law was issued by the Finance Ministry last year, on which opinions were sought from stakeholders. Now the preparation of the proposed law is in the final stage.

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