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Indian government directs social media to stop fraudulent loan app advertisements

Jan, 02, 2024 Hi-network.com

In response to concerns over deceptive digital lending apps, the Indian government has instructed social media and digital platforms to refrain from displaying advertisements for deceitful loan applications. The Minister of Electronics and Information Technology, Rajeev Chandrasekhar, emphasized that these apps are deceptive and exploit internet users.

Recent years have seen concerns about fraudulent digital lending apps, leading to efforts to create a whitelist of legal loan apps and prompting the Ministry to issue an advisory to social media platforms, urging them to take extra precautions within seven days and prohibit ads from illegal loan and betting apps that could potentially deceive users.

The government is reportedly amending IT Rules to prevent social media platforms from hosting ads for fraudulent apps, with potential consequences for legal immunity.

Why does it matter?

Recently, the Indian government has intensified its monitoring of social media. On the same day it addressed concerns about fraudulent loan app ads, the central government urged social media platforms to comply with IT rules, particularly in response to the growing worries surrounding deepfakes. The Ministry of Electronics and Information Technology directed intermediaries to ensure clear and precise communication of prohibited content to users, aligning with the guidelines outlined in Rule 3(1)(b) of the IT Rules.

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