Mumbai, December 25: RBI cautioned against loans being offered by unauthorised digital platforms, mobile applications promising a quick and hassle-free process. This warning comes on the back of a loan app scam that surfaced recently.

RBI in its notice said that there have been various reports about individuals/small businesses falling prey to the growing number of unauthorised digital lending platforms, Mobile Apps on promises of getting loans in a quick and hassle-free manner. Loan App Racket: 19 Arrested From Hyderabad, Cyberabad, Gurugram; RBI Cautions Borrowers.

The notice further mentioned that excessive rates of interest and additional hidden charges are being demanded from borrowers. Also, unacceptable and high-handed recovery methods are being done.

Urging people to not share copies of KYC documents with unidentified persons, unverified/unauthorised Apps, RBI said such fraudulent activities can be reported to law enforcement agencies or RBI’s Sachet portal (

Lately, there has been a tremendous rise of platforms which are offering attractive returns without revealing the conditions applied to it and then turning ugly with abuses and threats.

According to reports, several unauthorised apps are involved in the scam, to name a few would be-Hey Fish, Monkey cash, Cash Elephant, Loan Zone, Cash Zone, Water Elephant, Mera Loan etc. In addition to this, instant personal loan apps involved were — Cash Mama, Loan zone and Dhana Dhan.

(The above story first appeared on LatestLY on Dec 25, 2020 12:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website