Companies that attempt to post more than one DLA will have their accounts terminated.
Karachi: Google has introduced a new policy for personal loan applications across Pakistan, with a commitment to protect consumers from fake and unregistered lending apps.
Under the new rules in effect, non-banking finance companies (NBFCs) will be allowed to publish only one Digital Lending App (DLA).
Companies that attempt to publish more than one DLA will have all associated accounts terminated, including their developer account.
Developers creating personal loan apps for Pakistani users will be required to fill the Personal Loan App Declaration Form and submit necessary documents before publishing their app.
Along with this, they have to submit proof of approval from the Securities and Exchange Commission of Pakistan (SECP) to grant or facilitate digital lending in Pakistan.
Google Play will also request additional information or documentation regarding compliance with applicable regulatory and licensing requirements for said apps.
Personal loan apps operating in Pakistan without any declaration and license will be removed from Play Store. Developers must immediately remove their app from the Google Play Store even if the license, registration, or declaration submitted is not valid under applicable laws.
Regarding this, Farhan S. Qureshi, Director of Google for Pakistan, said: “Google is taking precautionary measures by setting strict conditions for digital landing apps to reduce financial risks and ensure data privacy. We strongly believe that the new conditions imposed on developers of personal loan apps will provide additional protection to consumers.”
Under the new rules, DLAs are barred from accessing sensitive data such as external storage, media images, contacts and exact location information. In addition, requiring full repayment within 60 days from the date of loan issuance. Apps offering short-term personal loans are also not allowed.
Pakistan is one of the few countries where Google has imposed additional conditions for DLA. The new policy update is an important step towards protecting consumers from harmful financial practices and ensuring data privacy.
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