India’s push to ban over 90 lending apps has despatched shockwaves to the fintech trade as many scramble to know why they’ve been impacted. The IT Ministry’s transfer is reportedly aimed toward defending the nation’s integrity and curb China’s affect within the South Asian market, the state-owned broadcaster Prasar Bharti stated on Sunday.

In conferences with fintech associations on Tuesday, officers from the IT Ministry and influential suppose tank Niti Aayog provided broader explanations concerning the resolution.

The IT Ministry is worried concerning the historic or present presence of Chinese language buyers on the cap tables of some lending apps in India, the officers stated, in response to a supply accustomed to the matter.

One other concern is the stories of cybercrimes which might be linked to China. The officers stated the Ministry of Dwelling Affairs has acquired stories of cybercrimes the place Chinese language corporations have entry to some Indian lending apps by means of APIs, which they’re utilizing to retailer Indian customers’ knowledge outdoors of the nation, the supply stated.

India’s Enforcement Directorate, the nation’s anti-money laundering drive, has recognized prison proceeds of over $255 million, the Ministry of Finance stated Tuesday in an announcement. “Unlawful” mortgage apps had been used to generate and purchase laundered capital, it added.

The ban – which seeks to crackdown on over 232 apps, greater than half of which provide playing and betting companies – was initially understood to solely affect Chinese language gamers. However the crackdown on PayU’s LazyPay, fintech Kissht, Indiabulls Dwelling Loans left the trade scrambling to seek out their very own compliances efforts.

The checklist, but to be publicly revealed however a replica of which was seen by TechCrunch, additionally contains third-party variations of Ola’s Avail Finance, KreditBee, TrueBalance and MPokket.

The officers stated on Tuesday that some apps are additionally getting impacted due to their sketchy loan-collection practices and buyer companies, in response to the supply, addressing a longstanding ache level of Indian customers.

February’s transfer provides to the Indian authorities and regulator’s rising scrutiny of Indian fintech startups which were requested to make a collection of main modifications to their enterprise practices previously two years.

India has blocked over 350 apps with hyperlinks to China lately amid clashes on the border that escalated tensions between the neighbor nations. New Delhi banned Tencent’s Xriver, Garena’s Free Hearth, NetEase’s Onmyoji Enviornment and Astracraft and 50 extra apps with obvious hyperlinks to China early final 12 months.

The Indian authorities additionally banned dozens of apps together with ByteDance’s TikTok, Xiaomi’s Group and Video Name apps and Alibaba Group’s UC Browser and UC Information in mid-2020.

New Delhi has by no means publicly stated that it’s taking actions on apps from any specific nation.