CPI(M) MP targets banking system in Rajya Sabha as he raises issue of people falling prey to loan apps

New Delhi: The issue of people falling prey to loan apps was raised in Rajya Sabha on Tuesday with CPI(M) MP AA Rahim claiming that this is happening mainly because banks are not lending money prompting the needy to rush to mobile applications offering quick and easy loans.

Raising the issue during Zero Hour in the Upper House, he said there has been a significant surge in loan app crimes in the country, which is a matter of "grave concern" as people are exploited using it.

"The reasons are increasing unemployment and living expenditure. Common people, especially the youth, are running from banks to banks for loans. But our nationalised banks are in a competition to provide loans to corporates without granting any loans to the needy masses,” he said.

“Our conventional banking system is denying loans to the poor and needy. This situation will naturally lead the common man to depend on other sources of money," he said.

He said the situation of people who borrow money through loan apps is "very pathetic" and once the payment is late or if they fail to pay the amount demanded by the app owners, the customer is blackmailed and such mafias commit heinous crimes, including circulating deep fake videos, and morphed images by using data extracted from the client during the registration process.

"This leads to client dying by suicide and other problems," Rahim said while accusing the government of remaining silent on the issue.

To address this, he suggested that the government should expand small credit schemes through nationalised banks, strengthening the cooperative sector and promoting credit schemes through cooperative banks. He also said the government should publicise details of legal and illegal loan apps at regular intervals.

Trinamool Congress' Samirul Islam raised the issue of the union government not clearing the MGNREGA dues to the West Bengal government and it is a matter of concern that the poor are "neglected" through the reduction in budget for the social sector scheme.

BJP's GVL Narasimha Rao demanded registration of cases against Tamil Nadu Ministers, including Udayanidhi Stalin, for making adverse remarks against 'Sanatan Dharma'. Rao said the remarks by Udayanidhi and others, including Karnataka Minister Priyank Kharge, were "hate speeches".

Another BJP MP Sushil Modi raised concerns about suicides of students in Kota institutes while NCP's Fauzia Khan raised the issue of missing women in the country.