Fintech Apps With Chinese Investors Under Govt Scanner: Wallets, Lending Apps & More
Chinese organizations/apps/companies are gaining increasing speculations of data security and privacy breaches as progressively in the rest of the world as in India, for instance the US.
Speaking of Chinese apps in India, the Indian government has already banned 224 Chinese apps, including Tik Tok and PUBG Mobile, after increasing border tensions/clashes with China, at the Line of Actual Control.
Now, in an attempt to safeguard Indian citizens’ most coveted information, the government has now decided to turn towards fintech apps being used in India, drawing links to Chinese investors/sources.
Could Some Indian Fintech Apps be Next on the List of Apps to be Banned?
In just a span of 3 months, from June-September, the Indian government has reportedly banned 224 Chinese apps, including 47 clone apps.
It has now been reported by two people close to government developments that the government is now planning to focus on several fintech apps having Chinese links.
One of the sources cited that data compromised through fintech platforms is more grave and riskier than the data compromised and shared through social media networks.
This is clearly because fintech companies have access to more personal information, like data on income tax, Aadhaar card and other details.
Thus, the government aims to not only protect citizen’s privacy but also address potential security risks.
Government to Ascertain Reason Behind Chinese Investors in Fintech Apss
Mint has reviewed and found out that many fintech companies in India have links to Chinese national investors.
For instance a Bengaluru-based fintech company has has two Chinese directors.
A person aware of this situation commented,
“The central bank does not regulate such entities because there are no public deposits involved. RBI can, however, alert the Centre and the respective state governments if it finds something suspicious.
This regulatory grey area could have implications from an espionage perspective.”
It has also been reported that several app-based lenders (apps) are known to allegedly make use of coercive recovery techniques, which borrowers have claimed to highlight borders on harassment.