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Stepping up its digital crackdown on China, India has now launched a new round of app bans in the country, targeting 138 offshore betting platforms.

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In an order issued on February 5, the Ministry of Home Affairs ordered the Ministry of Electronics and Information Technology (MeitY) to block and block 232 apps originating from or connected to China. These included 138 betting and 94 online lending applications.

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Sources said the apps violated Section 69 of the IT Act. In addition, senior ministry officials believe that the applications contain material that threatens the country’s sovereignty and integrity.

Another theme that has been prominent in the government’s debate on the issue is that these credit apps are driving Indians into debt and charging Indian consumers exorbitant interest.

The ban comes amid growing clamor to crack down on digital credit apps accused of harassing citizens and consumer borrowers. The situation is complicated by Chinese organizations and citizens running such platforms.

A crackdown on such apps over the past year has revealed that many lending apps in China monitor users’ phones and send confidential messages to digital lenders. In many cases, many such apps have been found to blackmail people with their photos into debt collection.

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These platforms have pushed many people into debt traps. As a result, there has been an increase in suicides among young people and adults in the last few years. While the government has ordered Google to crack down on such apps from the market, the effort has met with little success so far.

Surprisingly, websites of home loan technology players like Prosus-backed PayU’s LazyPay and Kissht have been blocked in the country, though their apps can still be downloaded from Google’s Play Store and Apple’s App Store.

On the other hand, betting apps have also been in the news for the wrong reasons. Such platforms attract users with huge profits and then trap them in a vicious cycle of paying but not winning.

It has also come to light that many Chinese have connived with Indians to run online gaming platforms by defrauding many organizations. Most of these platforms use the revenue from these fake apps to launder and remit money.

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These betting sites operate without any supervision and are based in India, so it is difficult to sue these companies in case of legal cases.

Many of these betting platforms also operate under the guise of sports blogs and use proxy methods to lure users.

This comes after the Indian government ordered search giant Google to stop displaying various ads from foreign online betting companies. Earlier, the coalition government had also called on broadcasters and video streaming services not to advertise online betting.

The move comes nearly a year after the federal government banned 54 apps over fears they originated in or had links to China.

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The app ban saga began in 2020 when the Center first banned 59 apps in June of that year. Big names have been affected by the disruption, including short-form video platform TikTok, file-sharing app ShareIt and UC Browser.

Several restrictions were implemented during the process, affecting 320 Chinese apps. Counting the current 232 apps, the total is now 552.

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