In a move to combat the proliferation of fraudulent loan apps, the Indian government has issued a directive to digital platforms, urging them to refrain from carrying advertisements promoting such deceptive applications. Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar, emphasized the need to tackle misleading and exploitative practices on the internet.
Addressing Misleading Advertisements
Chandrasekhar stated that the Ministry has issued an advisory to social media platforms, calling for additional measures to prevent the dissemination of advertisements for illegal loan and betting apps. The goal is to protect users from potential scams and misinformation associated with fraudulent financial applications.
Crucial Advisory for Intermediaries
The minister highlighted the importance of cracking down on the advertising of fraudulent loan apps, emphasizing that intermediaries must not carry such advertisements to prevent misleading practices and exploitation of internet users.
Government’s Stance on Social Media Compliance
The Information Technology (IT) ministry recently issued an advisory to social media platforms, urging them to comply with the provisions of the IT Rules. The directive emphasizes the prompt removal of misinformation, false or misleading content, and material impersonating others from these platforms.
Amendments to IT Rules Under Consideration
Reports suggest that the government is working on amendments to the IT Rules to ensure that social media platforms hosting advertisements of fraudulent apps do not enjoy legal immunity. The proposed amendments aim to strengthen the regulatory framework, enabling stricter action against platforms that fail to adhere to guidelines.
Government’s Past Efforts Against Fraudulent Loan Apps
In response to the surge in fraudulent digital lending apps, Finance Minister Nirmala Sitharaman had previously instructed the Ministry of Electronics and Information Technology (MeitY) and the Reserve Bank of India (RBI) to create a whitelist of legal loan apps following RBI guidelines. This directive aimed to ensure that only approved loan apps were available on major app stores.
Google’s Role in Curbing Fraudulent Apps
Earlier this year, Google implemented a new policy for personal loan apps, requiring them to disclose a comprehensive privacy policy detailing the access, collection, use, and sharing of personal and sensitive user data. The tech giant also took proactive measures by delisting more than 2,500 fraudulent digital lending apps from the Play Store between April 2021 and July 2022.
Upcoming Regulatory Changes
With the government’s focus on curbing fraudulent practices in the digital lending space, upcoming amendments to the IT Rules are expected to enhance the regulatory framework, ensuring stricter actions against platforms facilitating misleading advertisements.
