Google Play to protect consumers in Pakistan
from fake loan apps
Google Play has implemented a new screening
policy for digital lending apps in Pakistan to protect consumers from fake and
unregistered loan apps. Effective May 31, 2023, Non-Banking Finance Company
(NBFC) lenders are now allowed to publish only a single Digital Lending App
(DLA). Any attempt to publish more than one DLA will result in termination of
their developer account and associated accounts.
Developers targeting users in Pakistan with
personal loan apps must complete the Personal Loan App Declaration form and
provide necessary documentation before publishing their app. They must also
submit proof of approval from the Securities and Exchange Commission of
Pakistan (SECP) to offer or facilitate digital lending services in the country.
Google Play will request additional information
or documents to ensure compliance with regulatory and licensing requirements.
Personal loan apps operating in Pakistan without proper declaration and license
attribution will be removed from the Play Store. If the submitted license,
registration, or declaration is no longer valid under applicable laws,
developers must immediately remove the app from Google Play Store.
Farhan S. Qureshi, Google's Director for
Pakistan, emphasized that these stringent requirements for Digital Lending Apps
aim to reduce financial risks and protect user data, ensuring an extra layer of
protection for users.
Under the new rules, DLAs are prohibited from
accessing sensitive data, including external storage, media images, contacts,
and fine location. Additionally, apps offering short-term personal loans with
full repayment required within 60 days from the loan issue date are not
allowed.
Pakistan is among a select group of countries
where Google has implemented additional requirements for DLAs. This policy
update is a significant step towards safeguarding consumers from harmful
financial practices and ensuring data privacy.