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Illegal lending apps: SECP collaborating with Google to curb frauds

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  • Policy prevents  listing of such apps, imposes strict requirements.
  • Call agents required to utilise registered numbers, recorded lines.
  • SECP mandates cooling period, bars access to personal data.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has said that it is proactively engaged with Google to counter the proliferation of illegal lending apps, The News reported Thursday. 

The search engine has already removed 84 illegal lending apps from its Play Store and has introduced a Personal Loan App Policy for Pakistan, which is effective from May 31, 2023. 

Pakistan is the sixth country in the world, after India, Indonesia, the Philippines, Nigeria and Kenya, where Google has introduced additional requirements for digital lending Apps.

The SECP announced on Wednesday its commitment to continuously reviewing and reforming policies to foster the development of capital and financial markets. 

It promotes ease of business through technology, enhances financial inclusion, reduces entry barriers, and enforces laws transparently to protect people’s rights. 

The policy incorporates measures to prevent the listing of such apps and imposes strict requirements regarding access to consumers’ personal data.

Notably, in December 2022, the SECP implemented borrower protection requirements for digital lending non-banking financial companies (NBFCs). 

These requirements include the transparent disclosure of fees and loan terms to customers before disbursement.

The SECP prohibits access to personal data, enforces a mandatory 24-hour cooling-off period for loans, and restricts digital lending NBFCs to a single app. 

Call agents are required to utilise registered numbers and recorded lines.

However, lenders and agents must adhere to ethical and legal standards prohibiting unfair practices and harassment. 

The SECP maintains a robust enforcement system for ensuring compliance. The commission follows a two-tier process for digital lending companies. 

The first tier involves obtaining an NBFC license, which entails conducting due diligence, evaluating sponsors and directors, and appointing an independent director. 

The second tier includes app approval based on the CSAF auditors’ certificate, which ensures the security of data and apps by assessing disclosure requirements.

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Punjabi bakers decide to charge Rs. 15 for “roti.”

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The bread, known as roti, will be sold for Rs 15 by the bakers association.

During their discussion, the association promised Food Minister Bilal Yasin that the rate of roti will be reduced.

The minister was there when Association President Aftab Gul recorded a video message committing to sell rotis for Rs15 each.

According to him, the administration decided to lower the rate of flour. He continued, saying that the group was supporting the government hand in hand to stop inflation.

The price of flour has been drastically lowered, according to Food Minister Bilal, to help the populace. He stated, “the government aimed at providing quality and affordable bread to the masses.”

He said that the recent reduction of Rs 1,200 in the price of flour was the biggest drop in the commodity’s prices in the nation’s history.

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Day four of the AJK inflation protest begins as talks come to a standstill.

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Following the collapse of talks between the Awami Action Committee and the AJK government on Sunday, the shutdown strike and protests in Azad Kashmir over rising flour and energy costs started their fourth day on Monday.

The ongoing shutdown and wheeljam strike would continue until their demands are fulfilled, according to the Awami Action Committee.

AAC-led march on state capital Muzaffarabad today has brought the valley to a near stop. The caravans are coming from many AJK cities, and they are headed towards Rawalakot. The march is being caused by the impasse in the negotiations.

Reportedly, the demonstrators have blocked the 40-kilometer Kohala–Muzaffarabad Road, which connects Kohala Town and Muzaffarabad, multiple times.

Traffic on main thoroughfares and roads has decreased, and large police contingents have been stationed at strategic points and roundabouts.

After fighting broke out between the police and demonstrators in Mirpur on Saturday, which left one policeman dead and numerous others injured, the AJK government dispatched Rangers.

Everything is completely suspended, including internet and cellular services, business, and education.

Under the pretext of talks, Awami Action Committee leader Sardar Umar Nazir Kashmiri has charged that the administration is using deceptive methods.

Apart from the flour subsidy, he continues, the administration will not budge on any other demand.

CONVENE MEETINGS, PRESIDENT, PM

All parties involved have been asked by Prime Minister Shehbaz Sharif and President Zardari to use moderation and engage in discussions to find a solution. According to both, the demonstrators in Azad Kashmir should have their legitimate demands met.

The issue in AJK will be the topic of a significant meeting that Prime Minister Shehbaz Sharif is calling today, Monday.

The skirmishes between the demonstrators and the AJK police caused anxiety for the premier on Sunday.

Speaking with Chaudhry Anwarul Haq, the prime minister of AJK, he said he also gave the office-bearers of the All-Pakistan Muslim League-Nawaz in AJK instructions to speak with the leaders of the Awami Action Committee.

Olive Branch is offered by AJK PM.

Prime Minister of Jammu and Kashmir Chaudhry Anwarul Haq stated on Sunday that his administration was ready to lessen the burden of exorbitant grain and energy costs.

Regarding Saturday’s meetings with the demonstrators, Prime Minister Haq declared, “We are determined to implement the agreement we have reached with the Awami Action Committee.”

Politicians, according to Haq, have found solutions to issues through discussion and “we are ready to talk with the Awami Action Committee at any level and the demands related to the government of Pakistan will be raised before the federation.”

In order to ease the burden of rising flour and power prices, he also expressed a willingness to modify the development budget if needed.

The AJK prime minister stated that his government’s first priority was ensuring public safety, and he further stated that no force was applied to the demonstrators.

Sub-inspector Adnan Qureshi was killed in a confrontation with demonstrators in Mirpur, and hundreds of people attended his funeral on Monday.

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Today’s National Assembly session is scheduled.

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The National Assembly (NA) will meet today (Monday) at the invitation of President Asif Ali Zardari.

At 4:00 p.m., the National Assembly will convene in the federal capital at Parliament House. The meeting’s agenda has been released by the assembly secretariat.

As per Article 54(1) of the Constitution of the Islamic Republic of Pakistan, the President has the authority to call a session of the National Assembly.

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