Indian Government Bans Chinese-linked Betting and Loan Apps
The Indian government has taken a major step to ban 230 apps, which include 138 betting and gambling apps, and 94 lending apps. The Ministry of Electronics and Information Technology (MeiTY) is in the process of implementing the ban immediately, acting upon the recommendation from the Ministry of Home Affairs.
According to a government source, these apps were maintained by foreign entities and include Chinese entities. Almost all of Chinese entities are controlled by the Chinese communist party, and the party would have access to user data through these apps.
The apps could collect users’ location data, browsing data, contact information and enable developing profiles for espionage purposes. They could also collect sensitive national security information from government employees. These apps, would therefore, pose a national security threat.
The apps could use user data to influence people by promoting some content, while censoring other information. Section 69 of IT Law allows government to ban such apps that pose national security threats.
The lending apps were operating with a lack of transparency and customers were taking out huge loans without realizing the proper terms and conditions. These apps charged high interest rates up to 3000 percent. When customers were unable to repay, the representatives would resort to harassment, which include threats to release their morphed photos.
A series of suicide incidents of people who have lost money in betting, or taken huge loans occurred in Andhra Pradesh and Telangana. The state governments have reported the cases and urged the central government to take action on the apps. On investigating, it was found that there were 288 such apps, with 94 of them on the app store, while others were available through third-party links.
In the past, the Indian government banned many Chinese apps including TikTok, PUBZ, Xender, Shien, Garena Free Fire, Canscanner etc. that gather users’ sensitive data, and are detrimental to the country’s sovereignty and integrity.
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