Hindi English Translation || Editorial || Devious menace: On predatory loan apps

Devious menace: On predatory loan apps

Loan apps function (कार्य करना, संचालित होना) in a regulatory dark area (नियामकीय अस्पष्ट क्षेत्र) and promise (वादा करना, आश्वासन देना) easy credit (ऋण, उधार)

In the case of Nithin Raj, the first-year dental student in Kannur who died last week after falling from atop (ऊपर, के ऊपर) a five-storey building, the police have identified harassment (उत्पीड़न) over a loan that he secured (प्राप्त करना, हासिल करना, सुनिश्चित करना) via an app as a contributing factor (सहायक कारण, योगदान देने वाला कारक). His death is the third high-profile (चर्चित, बहुचर्चित) suicide linked to loan apps (a mobile application that facilitates the lending of money directly to users, often with quick approvals but sometimes associated with hidden extortionate terms) in Kerala within four months. Since January, over 35 complaints related to these apps have been registered in Thiruvananthapuram Rural alone. In Raj’s case, parallel (समानांतर) investigations are also probing (जांच करना, पड़ताल करना) allegations (claim, charge, accusation) of caste-based discrimination (the unjust or prejudicial treatment of different categories of people; bias, prejudice, bigotry, unfairness) at his college and the National Commission for Scheduled Castes (a constitutional body in India established under Article 338 of the Constitution to safeguard the interests, rights, and welfare of the Scheduled Castes) has sought (past tense of seek; attempted to find or obtain; requested, asked for, demanded, appealed for) a report from the State police in under a week. Once installed, these apps extract (to obtain something such as money or information from someone, often by force or threats; extort, force, wring, exact) contact lists, photo galleries, and GPS data from the user’s device and export them to servers often located in North India or overseas (from, to, or relating to a foreign country, especially one across the sea). If repayment is delayed, recovery agents (debt collector, collection agent) steadily (gradually, consistently, progressively, constantly) ramp up (to increase the level, amount, or speed of something sharply; escalate, boost, increase, step up) harassment, including repeated abusive (insulting, derogatory, offensive, cruel) calls to the borrower (a person or organization that takes money from a lender with the agreement to pay it back; debtor, loanee), harassing (to subject someone to aggressive pressure or intimidation; torment, pester, badger, hound) persons listed as references (contact, connection, associate, acquaintance) on the loan application, and inflicting (to cause something unpleasant or painful to be suffered by someone; impose, deliver, exact, administer) reputational damage (the loss of prestige or harm caused to a person’s or organization’s good name and standing in society). Kerala in particular (especially or specifically; specifically, particularly, exactly, notably) has high smartphone penetration (the extent or degree to which a product or technology is recognized and adopted in a market; infiltration, spread, adoption, proliferation) and digital literacy (the ability to confidently, safely, and effectively use digital technologies and internet platforms to navigate information), but not necessarily (inevitably, unavoidably, certainly, automatically) financial literacy (the possession of knowledge and skills that enable an individual to make informed and effective financial and monetary decisions), and a large student population with urgent small-credit (a financial loan of a relatively small amount, often targeted at individuals lacking traditional banking access; microcredit, microloan, small loan) needs. Despite the RBI’s Digital Lending Guidelines (a regulatory framework introduced by the Reserve Bank of India (RBI) to govern online loan disbursements, ensuring transparency, consumer protection, and ethical practices), predatory (शोषणकारी) apps lend (to grant someone the use of money with the understanding that it will be paid back, usually with interest; loan, provide credit) without regulated status (the condition of being officially recognized, governed, and overseen by a statutory financial authority like the RBI), fabricate (to invent or concoct something, typically with deceitful intent; fake, forge, falsify, manufacture) Non-Banking Financial Company (NBFC) partnerships, route funds through opaque (lacking transparency or clarity, especially regarding hidden fees or rules; obscure, unclear, cryptic, hidden) gateways (a technological service that authorizes and processes direct payments for businesses; portal, entry point, processing channel), conceal fees and disbursal (the act of paying out money, especially from a loan or fund; payment, distribution, payout, remittance) deductions, and provide no grievance (complaint, objection, grouse, resentment) mechanism.

The apps are able to operate because while the RBI regulates (control, govern, oversee, monitor) financial entities, the harmful entity (organization, body, institution, establishment) operates in the app and data layers. As a first step, smartphone makers must consider an OS-level sandbox (a secure, isolated testing environment within an operating system where applications can be executed safely without affecting the core system or user data) in which any app categorised (classify, sort, group) as “financial” is technically barred from accessing contacts, photos, etc., even if (despite the possibility that; whether or not, regardless of whether) the user grants (allow, accord, permit, authorize) permission. The apps’ call centres are also often traced (track down, locate, discover, unearth) to other States or countries, beyond the reach (outside the capacity, jurisdiction, or control of someone or an authority; inaccessible, untouchable, out of bounds, out of range) of local police. Second, India needs to enact legislation (laws considered collectively; statutes, law-making, regulations, rulings) with prison sentences (the punishment assigned to a defendant found guilty by a court; punishment, penalty, judgment, ruling) and heavy fines for illegal (unlawful, illegitimate, illicit, prohibited) digital lending. When an app is removed from a store or directory (list, catalog, register, index), its developers relaunch immediately under new names. Third, the government can mandate (to make something strictly required by law or official rule; dictate, order, command, require) all financial apps to have a cryptographically (in a manner relating to the use of complex codes and ciphers to protect and secure digital information or communication) signed certificate of association from a regulated bank (a formal banking institution that is fully licensed and strictly overseen by the central banking authority) or NBFC and app stores to check listings against a Reserve Bank of India whitelist (a list or register of entities, applications, or users that are considered acceptable, safe, or trustworthy and are granted specific access or privileges). This is also why the Kerala government is mulling (to think about at length; consider, ponder, contemplate, deliberate) new legislation to regulate digital lending (the process of offering and managing loans or credit predominantly through digital channels, online portals, or mobile applications) platforms and empower (authorize, enable, entitle, permit) local police to act against (to take decisive action to prevent, oppose, or penalize someone or something; oppose, counter, resist, tackle) apps operating from outside the State. Fourth, the country needs rigorous (extremely thorough, strict, or demanding; stringent, severe, uncompromising, tough) disclosure standards on effective (successful, efficient, productive, potent) interest rates and fees, strict rules on recovery conduct (behavior, performance, demeanor, actions), stricter KYC (Know your Customer) obligations (duty, commitment, responsibility, requirement) on payment aggregators (a third-party service provider that integrates various payment methods, allowing merchants to accept payments from customers without setting up separate accounts with each bank), and risk flags on UPI IDs associated with lending operations associated with a high complaint rate.

Courtesy: The Hindu

Important Word List With Meaning

1.devious (adjective)

Hindi Meaning - चालाक, धूर्त
English Meaning - showing a skillful use of underhanded tactics to achieve goals; deceitful, cunning, underhanded, scheming.

2.menace (noun)

Hindi Meaning - खतरा, संकट
English Meaning - threat, peril, risk, hazard.

3.predatory (adjective)

Hindi Meaning - शोषणकारी
English Meaning - seeking to exploit, victimize, or prey on others; exploitative, extortionate, opportunistic, rapacious.

4.function (verb)

Hindi Meaning - कार्य करना, संचालित होना
English Meaning - to work or operate in a particular way; operate, perform, run, act.

5.regulatory dark area (noun)

Hindi Meaning - नियामकीय अस्पष्ट क्षेत्र
English Meaning - an ambiguous sector or space that lacks clear legal oversight, rules, or government supervision.

6.probe (verb)

Hindi Meaning - जांच करना, पड़ताल करना
English Meaning - investigate, inquiry, examine, scrutinise.

7.promise (verb)

Hindi Meaning - वादा करना, आश्वासन देना
English Meaning - pledge, vow, guarantee, assure.

8.credit (noun)

Hindi Meaning - ऋण, उधार
English Meaning - loan, financing, financial backing.

9.atop (preposition)

Hindi Meaning - ऊपर, के ऊपर
English Meaning - on the top of, over, above, resting on.

10.harassment (noun)

Hindi Meaning - उत्पीड़न
English Meaning - aggressive pressure, intimidation, or persistent unwarranted behavior; persecution, bullying, badgering, pestering.

11.secure (verb)

Hindi Meaning - प्राप्त करना, हासिल करना, सुनिश्चित करना
English Meaning - to manage to get or obtain something, often with effort; acquire, obtain, gain, procure.

12.contributing factor (noun)

Hindi Meaning - सहायक कारण, योगदान देने वाला कारक
English Meaning - an element or condition that helps to bring about a particular result; cause, reason, influence, determinant.

13.high-profile (adjective)

Hindi Meaning - चर्चित, बहुचर्चित
English Meaning - attracting much public attention or publicity; prominent, well-known, visible, conspicuous.

14.parallel (adjective)

Hindi Meaning - समानांतर
English Meaning - concurrent, simultaneous, coinciding, side-by-side.

15.regulatory (adjective)

Hindi Meaning - नियामक, नियंत्रक
English Meaning - serving or intended to control or govern an activity or sector through rules; supervisory, controlling, managerial, governing.

16.loan app (noun)

English Meaning - a mobile application that facilitates the lending of money directly to users, often with quick approvals but sometimes associated with hidden extortionate terms.

17.dark area (noun)

English Meaning - unregulated space, gray area, hidden zone.

18.allegation (noun)

English Meaning - claim, charge, accusation.

19.discrimination (noun)

English Meaning - the unjust or prejudicial treatment of different categories of people; bias, prejudice, bigotry, unfairness.

20.National Commission for Scheduled Castes (organization)

English Meaning - a constitutional body in India established under Article 338 of the Constitution to safeguard the interests, rights, and welfare of the Scheduled Castes.

21.sought (verb)

English Meaning - past tense of seek; attempted to find or obtain; requested, asked for, demanded, appealed for.

22.extract (verb)

English Meaning - to obtain something such as money or information from someone, often by force or threats; extort, force, wring, exact.

23.overseas (adjective)

English Meaning - from, to, or relating to a foreign country, especially one across the sea.

24.recovery agent (noun)

English Meaning - debt collector, collection agent.

25.steadily (adverb)

English Meaning - gradually, consistently, progressively, constantly.

26.ramp up (phrasal verb)

English Meaning - to increase the level, amount, or speed of something sharply; escalate, boost, increase, step up.

27.abusive (adjective)

English Meaning - insulting, derogatory, offensive, cruel.

28.borrower (noun)

English Meaning - a person or organization that takes money from a lender with the agreement to pay it back; debtor, loanee.

29.harass (verb)

English Meaning - to subject someone to aggressive pressure or intimidation; torment, pester, badger, hound.

30.reference (noun)

English Meaning - contact, connection, associate, acquaintance.

31.inflict (verb)

English Meaning - to cause something unpleasant or painful to be suffered by someone; impose, deliver, exact, administer.

32.reputational (adjective)

English Meaning - relating to the beliefs, opinions, or public image generally held about someone or something.

33.reputational damage (noun)

English Meaning - the loss of prestige or harm caused to a person’s or organization’s good name and standing in society.

34.in particular (phrase)

English Meaning - especially or specifically; specifically, particularly, exactly, notably.

35.penetration (noun)

English Meaning - the extent or degree to which a product or technology is recognized and adopted in a market; infiltration, spread, adoption, proliferation.

36.digital literacy (noun)

English Meaning - the ability to confidently, safely, and effectively use digital technologies and internet platforms to navigate information.

37.necessarily (adverb)

English Meaning - inevitably, unavoidably, certainly, automatically.

38.financial literacy (noun)

English Meaning - the possession of knowledge and skills that enable an individual to make informed and effective financial and monetary decisions.

39.small-credit (noun)

English Meaning - a financial loan of a relatively small amount, often targeted at individuals lacking traditional banking access; microcredit, microloan, small loan.

40.Digital Lending Guidelines (noun)

English Meaning - a regulatory framework introduced by the Reserve Bank of India (RBI) to govern online loan disbursements, ensuring transparency, consumer protection, and ethical practices.

41.lend (verb)

English Meaning - to grant someone the use of money with the understanding that it will be paid back, usually with interest; loan, provide credit.

42.regulated status (noun)

English Meaning - the condition of being officially recognized, governed, and overseen by a statutory financial authority like the RBI.

43.fabricate (verb)

English Meaning - to invent or concoct something, typically with deceitful intent; fake, forge, falsify, manufacture.

44.Non-Banking Financial Company (NBFC) (organization)

English Meaning - a financial institution registered under the Companies Act that offers various banking services, such as loans and credit facilities, but does not possess a full banking license.

45.opaque (adjective)

English Meaning - lacking transparency or clarity, especially regarding hidden fees or rules; obscure, unclear, cryptic, hidden.

46.gateway (noun)

English Meaning - a technological service that authorizes and processes direct payments for businesses; portal, entry point, processing channel.

47.disbursal (noun)

English Meaning - the act of paying out money, especially from a loan or fund; payment, distribution, payout, remittance.

48.grievance (noun)

English Meaning - complaint, objection, grouse, resentment.

49.mechanism (noun)

English Meaning - procedure, system, method, apparatus.

50.regulate (verb)

English Meaning - control, govern, oversee, monitor.

51.financial entity (noun)

English Meaning - an organization that deals primarily with financial and monetary transactions; financial institution, financial body, financial organization.

52.entity (noun)

English Meaning - organization, body, institution, establishment.

53.OS-level sandbox (noun)

English Meaning - a secure, isolated testing environment within an operating system where applications can be executed safely without affecting the core system or user data.

54.categorise (verb)

English Meaning - classify, sort, group.

55.bar (verb)

English Meaning - ban, prohibit, forbid, restrict.

56.even if (phrase)

English Meaning - despite the possibility that; whether or not, regardless of whether.

57.grant (verb)

English Meaning - allow, accord, permit, authorize.

58.trace (verb)

English Meaning - track down, locate, discover, unearth.

59.beyond the reach (phrase)

English Meaning - outside the capacity, jurisdiction, or control of someone or an authority; inaccessible, untouchable, out of bounds, out of range.

60.legislation (noun)

English Meaning - laws considered collectively; statutes, law-making, regulations, rulings.

61.sentence (noun)

English Meaning - the punishment assigned to a defendant found guilty by a court; punishment, penalty, judgment, ruling.

62.illegal (adjective)

English Meaning - unlawful, illegitimate, illicit, prohibited.

63.digital lending (noun)

English Meaning - the process of offering and managing loans or credit predominantly through digital channels, online portals, or mobile applications.

64.directory (noun)

English Meaning - list, catalog, register, index.

65.mandate (verb)

English Meaning - to make something strictly required by law or official rule; dictate, order, command, require.

66.cryptographically (adverb)

English Meaning - in a manner relating to the use of complex codes and ciphers to protect and secure digital information or communication.

67.regulated bank (noun)

English Meaning - a formal banking institution that is fully licensed and strictly overseen by the central banking authority.

68.whitelist (noun)

English Meaning - a list or register of entities, applications, or users that are considered acceptable, safe, or trustworthy and are granted specific access or privileges.

69.mull (verb)

English Meaning - to think about at length; consider, ponder, contemplate, deliberate.

70.digital lending platform (noun)

English Meaning - an electronic or online system that facilitates the borrowing and lending of money between financial institutions and borrowers.

71.empower (verb)

English Meaning - authorize, enable, entitle, permit.

72.act against (phrasal verb)

English Meaning - to take decisive action to prevent, oppose, or penalize someone or something; oppose, counter, resist, tackle.

73.rigorous (adjective)

English Meaning - extremely thorough, strict, or demanding; stringent, severe, uncompromising, tough.

74.disclosure (noun)

English Meaning - revelation, declaration, transparency, exposition.

75.effective (adjective)

English Meaning - successful, efficient, productive, potent.

76.conduct (noun)

English Meaning - behavior, performance, demeanor, actions.

77.stricter (adjective)

English Meaning - more stringent, harsher, firmer, more rigid.

78.KYC (Know your Customer) (noun)

English Meaning - a mandatory regulatory process in the financial sector to verify the identity, address, and credentials of clients to prevent fraud and money laundering.

79.obligation (noun)

English Meaning - duty, commitment, responsibility, requirement.

80.payment aggregator (noun)

English Meaning - a third-party service provider that integrates various payment methods, allowing merchants to accept payments from customers without setting up separate accounts with each bank.

81.risk flag (noun)

English Meaning - an alert, warning, or indicator highlighting a potential hazard, danger, or suspicious activity within a system.

82.UPI ID (noun)

English Meaning - Unified Payments Interface Identifier; a unique virtual payment address mapped to a user’s bank account for conducting immediate, secure digital transactions.

83.Unified Payments Interface (UPI) (noun)

English Meaning - an instant real-time payment system developed by the National Payments Corporation of India (NPCI) to facilitate seamless inter-bank peer-to-peer and person-to-merchant transactions.

84.associate with (phrasal verb)

English Meaning - connect to, link with, relate to, affiliate with.