Experts flag dubious biz model of digital small money lending apps
Bengaluru (PTI): Digital small money lending apps backed by financial professionals are using dubious means in their business with borrowers bearing the brunt, experts have flagged.
These mobile apps offer loan of a few hundred rupees to about Rs 10,000.
"However, they hold back at least 25 per cent of the money in the name of processing fees and, further, the rate of interest is high in some cases, which is against the norm", says Bengaluru Additional Commissioner of Police, Raman Gupta.
He alleged that the role of financial professionals is shady in the operations of such kinds of instant loan apps on mobile phones.
"There is a major role of chartered accountants and company secretaries and these finance professionals in setting up such instant money lending companies. They become directors and name someone else as the operator," Gupta told PTI.
Gupta who had investigated dubious businesses of some of these mobile applications even agrees with the idea of blacklisting such financial professionals.
"The applications are developed in India and there are many software engineers here to develop it but the brain behind this business model is Chinese," he stated.
Another expert said these platforms at the time of downloading the application get access to the phone calls, photographs and videos, which are used to blackmail the borrowers.
"In some cases, these digital loan apps make a profit as high as 2,100 per cent," he said.
According to Gupta, these money-lenders hardly hire any recovery agents as they use the photographs, videos and contacts to blackmail people to cough up the amount.
"For recovery of their dues from defaulters, these digital money lending operators send messages to the contacts accessed from the borrowers' phones, use the personal photographs and videos of the borrowers and in some cases morph the photograph of the money lenders and send them to the contacts on phone," Gupta said.
According to sources in the financial sector, the dubious means of digital money lending platform have claimed many lives, especially during the height of the Covid-19 pandemic when people were in dire need of money, and unable to pay back on time.
Police sources also pointed out at various instances of people ending their lives over the matter but did not divulge any numbers.
Gupta added "the only way is awareness among people against these applications. No one should download them. Also, the digital money lending platforms should be regulated and a policy should be formulated." PTI GMS RS SA SS
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CJI calls for 'unified judicial policy', use of technology to converge practices across courts
Jaisalmer (PTI): Pushing for a "unified judicial policy", Chief Justice of India Surya Kant on Saturday said technology can help align standards and practices across courts, creating a "seamless experience" for citizens, regardless of their location.
He said high courts -- due to the federal structure -- have had their own practices and technological capacities, and "regional barriers" can be broken down with technology to create a more unified judicial ecosystem.
Delivering the keynote address at the West Zone Regional Conference in Jaisalmer, Kant proposed the idea of a "national judicial ecosystem" and called for an overhaul of India's judicial system with the integration of technology.
"Today, as technology reduces geographical barriers and enables convergence, it invites us to think of justice not as regional systems operating in parallel, but as one national ecosystem with shared standards, seamless interfaces, and coordinated goals," he said.
He emphasised how the role of technology in the judiciary has evolved over time.
"Technology is no longer merely an administrative convenience. It has evolved into a constitutional instrument that strengthens equality before the law, expands access to justice, and enhances institutional efficiency," he said, highlighting how digital tools can bridge gaps in the judicial system.
Kant pointed out that technology enables the judiciary to overcome the limitations of physical distance and bureaucratic hurdles.
"It allows the judiciary to transcend physical barriers and bureaucratic rigidities to deliver outcomes that are timely, transparent and principled," he said, adding that the effective use of technology can modernise the delivery of justice and make it more accessible to citizens across the country.
The CJI called for implementing a "unified judicial policy".
He said India's judicial system has long been shaped by its federal structure, and different high courts have their own practices and technological capacities.
"India's vast diversity has led to different high courts evolving their own practices, administrative priorities and technological capacities. This variation, though natural in a federal democracy, has resulted in uneven experiences for litigants across the country," he said.
Kant underscored that predictability is crucial for building trust in the judicial system.
"A core expectation citizens place upon the courts is predictability," he said, adding that citizens should not only expect fair treatment but also consistency in how cases are handled across the country.
He pointed to the potential of technology in improving predictability.
"Technology enables us to track systemic delays and make problems visible rather than concealed," he said.
By identifying areas where delays occur, such as in bail matters or cases involving certain types of disputes, courts can take targeted action to address these issues and improve efficiency, Kant said.
The CJI explained that data-driven tools could identify the reasons behind delays or bottlenecks, allowing for faster, more focused solutions.
"Technology enables prioritisation by flagging sensitive case categories, monitoring pendency in real time and ensuring transparent listing protocols," he said.
Justice Surya Kant also discussed the importance of prioritising urgent cases where delays could result in significant harm. He highlighted his recent administrative order that ensures urgent cases, such as bail petitions or habeas corpus cases, are listed within two days of curing defects.
"Where delay causes deep harm, the system must respond with urgency," he stated, explaining that technology can help courts identify and expedite such cases.
Kant also raised the issue of the clarity of judicial decisions.
He noted that many litigants, despite winning cases, often struggle to understand the terms of their judgment due to complex legal language.
"Although the orders had gone in their favour, they remained unsure of what relief they had actually secured because the language was too technical, vague or evasive to understand," he said.
He advocated for more uniformity in how judgments are written.
"A unified judicial approach must therefore extend to how we communicate outcomes," he said.
The CJI also discussed the role of AI and digital tools in improving case management. He pointed to the potential of AI-based research assistants and digital case management systems to streamline judicial processes.
"Emerging technological tools are now capable of performing once-unthinkable functions. They can highlight missing precedent references, cluster similar legal questions, and simplify factual narration," he said, explaining how these technologies can help judges make more consistent decisions.
He also highlighted tools like the National Judicial Data Grid and e-courts, which are already helping to standardise processes like case filings and tracking.
Kant reiterated that the integration of technology into the judicial process is not just about improving efficiency but about upholding the integrity of the system and strengthening public trust.
"The measure of innovation is not the complexity of the software we deploy, but the simplicity with which a citizen understands the outcome of their case and believes that justice has been served," he said.
