The Bank of Ghana is preparing to take action against mobile loan apps and other digital lenders operating in the country without a license.

The warning comes after the June 30 deadline given to existing Digital Credit Service Providers to apply for approval and regularise their operations.

Digital Credit Service Providers are companies that offer loans through mobile apps, websites or other digital platforms.

In a statement, the central bank said operators that failed to meet the deadline could face regulatory action under Ghana’s laws and financial sector regulations.

The Bank of Ghana did not provide details on the specific penalties that may be imposed. However, the announcement suggests that unlicensed providers could face sanctions or be prevented from continuing their operations.

The central bank also advised members of the public to be careful when borrowing money from digital lenders.

Customers have been encouraged to confirm that a provider is licensed by the Bank of Ghana before applying for a loan or sharing personal and financial information.

This is important because some unlicensed loan apps may charge unclear fees, impose high interest rates or use aggressive methods to recover loans from customers.

The Bank of Ghana said it would soon publish and regularly update a list of licensed Digital Credit Service Providers on its official website.

The list is expected to help borrowers identify approved lenders and avoid dealing with unregulated operators.

The central bank has also published Frequently Asked Questions to help the public understand the new regulatory requirements.

The information explains the licensing process for digital credit providers, how customers can verify whether a lender is licensed and what could happen to operators that fail to comply with the rules.

It also provides guidance on how the regulatory action could affect customers who already have loans with unlicensed providers.

The Bank of Ghana advised the public to visit its official website for the full FAQs and further information on the regulation of digital lending services in Ghana.