The government has sent notices to 21 smartphone makers, including Chinese manufacturers like Xiaomi, Vivo, Oppo and Gionee, for allegedly stealing users' personal information.
Non-Chinese companies on the list include Apple, Samsung and Micromax.
"They have been given until August 28 to file compliance with security norms. We may also conduct audits," sources said.
A penalty will be levied if norms are violated, they added.
Meanwhile, a review of Chinese electronics and IT imports
Simultaneously, the government has also started reviewing imported electronics and IT products from China due to concerns over security and data leaks.
Chinese companies have a major hold on the Indian IT industry, worth about $22bn, which the government feels can be misused.
"Many of the devices transmit, or store, data back into Chinese servers, which could pose a security risk," a source said.
How vulnerable is India to Chinese goods, actually?
Recently, IT Minister Ravi Shankar Prasad reportedly ordered an assessment of India's vulnerability in terms of Chinese imports. Sources said a top-level meet was held to review Chinese involvement in India's electronics and IT industry.
Should you trust cheap Chinese phones?
Several reports have questioned the reliability of Chinese phones with respect to privacy. Last month, news emerged Laagoo and Nomu handsets come with a built-in malware.
Recently, researchers claimed snooping adware was installed in BLU devices.
Last December, it was reported that BLU sent users' messages, contacts and call logs to Chinese servers. It has reportedly been fixed.
Experts say inexpensive models are riskier.
Meanwhile, Chinese troops attempts a transgression at Ladakh
Just yesterday, Indian and Chinese troops at Ladakh indulged in violence on the 71st Independence Day.
This comes amid the months-long Doklam standoff.
Indian troops clashed with the PLA, who tried to transgress into Ladakh at the Pangong Tso lake.
According to former Northern Army Commander BS Jaswal, China realizes war isn't an option and is trying to occupy 'vulnerable and disputed areas'.
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