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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Siddaramaiah tells Centre not to punish Karnataka for being progressive
Bengaluru (PTI): Karnataka Chief Minister Siddaramaiah on Friday underlined the need for justice in the devolution of taxes.
He said no one should milk a milch cow completely, or else the calf would be malnourished.
Addressing people on the occasion of the 69th state formation day at Sree Kanteerava Stadium here, Siddaramaiah said there is injustice happening to Karnataka.
The state is contributing more than Rs four lakh crore as revenue to the Centre and it is the second largest contributor to the Central tax revenue after Maharashtra, he pointed out.
"Even though we give more than Rs four lakh crore, we are only getting Rs 55,000 crore to Rs 60,000 crore. Kannadigas should know this. We are getting 14 to 15 per cent only of our contribution," the chief minister said.
Under the federal system, there should not be any injustice just because Karnataka is a progressive state, he observed.
"Just because a milch cow is giving milk, we should not milk it completely. We should leave some milk for the calf too or else it will malnourish. This no one should ever forget," Siddaramaiah said.
The chief minister emphasised taking pride in Kannada and bringing it in daily use as much as possible.
Stating that Karnataka has people speaking more than 200 languages, Siddaramaiah said, whatever language people speak here or whichever caste or religion they belong to, they all are Kannadigas. Those who consume the air, water and food are Kannadigas, he told the gathering.
He said Kannada is a very old language with a history of 7,000 years. Hence, the Centre too recognised it as a classical language.
Siddaramaiah appealed to the people that they should never sacrifice Kannada language.
"I don't oppose being liberal. I in fact endorse being liberal but not at the cost of sacrificing our language," the chief minister noted.
"Our affection for our language should not be extreme, but we should never give up our pride for our language. We all should be Kannada lover," he added.
For Kannada to grow, people living here must become Kannadigas, Siddaramaiah said.
"I will never say not to learn any other language. Keep enhancing your linguistic wealth but never forget speaking in Kannada," he told people.
He reminded people that November 1 is not only the state formation day but also the anniversary of Mysore state getting the name of Karnataka by the then chief minister, late D Devaraj Urs.
A cultural programme themed around 'Hesarayithu Karnataka, Usiragali Kannada' (the state got the name Karnataka, now Kannada should become the breath) was held on the occasion.
