The Centre on Sunday ordered a ban on 232 apps by run by Chinese and other foreign entities, including 138 betting apps and 94 loan apps, on an "urgent" and "emergency" basis.
The Ministry of Electronics and Information Technology (MeitY) took this decision based on the recommendations of the Ministry of Home Affairs .
The government acted against these apps following myriad complaints of extortion and harassment of individuals who had availed small amounts of loans through these mobile apps. These complaints suggest that financially desperate people would be lured into borrowing from these apps and would often be charged interest rates as high as 3,000 per cent. When debtors were unable to pay their dues, they would be harassed by loan app agents.
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The move was taken after confirming that these apps contained material that was prejudicial to the sovereignty and integrity of India under Section 69 of the IT Act.
A large number of these apps are owned by Chinese nationals, who hire Indians and made them directors in the operation of said apps.