News indications for digital payments apps are not so favourable. After banning 177 Chinese applications, now the Indian government is going one step ahead. The government is now investigating many fintech apps with Chinese links to check for data and privacy breaches, reported Livemint. Soon, some Indian fintech will make it to the banned list which has likes of TikTok and PUBG Mobile already on it.
“The potential implications of a data compromise from fintechs such as lending apps are grave, since it involves sharing sensitive data of the user to the lender,” said people familiar with the matter. “The kind of data one provides to fintech firms is riskier than what one would share on social media networks. Data on income tax, Aadhaar card and other details are taken by these app-based lenders.”
Some of these fintechs who have Chinese nationals as directors have raised an alarm among the Indian government.
Another leading Newspaper Hindustan Times claimed that one Thane-based and another Bengaluru-based company have Chinese nationals as a director. So, the government is investigating these fintechs on their role in breaching data law.
The Reserve Bank of India (RBI) does not regulate fintechs and does not come under its direct supervision. The central bank can alert the Centre and state governments in case of any suspicious activity.