The Indian government has issued a warning to social media platforms and internet-based companies to refrain from placing advertisements for fraudulent loan apps. This action comes in response to widespread concerns regarding the emergence of loan apps and gambling platforms during the Covid-19 pandemic.
Reports have revealed that some of these apps provide loans to desperate borrowers at high interest rates and employ harassment and blackmail methods to enforce debt collection. In light of this, the Ministry of Information Technology has issued a recommendation instructing platforms to take additional measures to ensure that ads for illegal loan and gambling apps are not displayed. Failure to comply with these recommendations will be the responsibility of intermediaries and the platforms themselves.
This recommendation comes after two months of discussions between the ministry and the Reserve Bank of India (RBI) regarding necessary actions against such apps. During the meeting, it was suggested that the RBI implement a more comprehensive “Know Your Customer” procedure for banks to curb these fraudulent activities.
The government has commended Google for its efforts in combating fraudulent loan apps. In response to a letter from Ramsaby, the Ministry of Finance’s Nirmala Sitharaman announced that from April 2021 to July 2022, Google has suspended or removed over 2,500 such apps from its Play Store. The government is collaborating with regulatory bodies like the RBI to combat these scams.
The RBI has provided the government with a “white list” of legitimate apps, which has been shared with Google since the Play Store is the primary platform for distributing digital loan apps.
It is crucial for internet platforms to act responsibly in order to protect users from falling into the traps of these fraudulent loan apps. By diligently complying with the recommendations, platforms can play a key role in safeguarding the interests of their users and preventing financial exploitation.
The active efforts of the government in addressing this issue should be appreciated, and it is necessary for all stakeholders, including intermediaries and platforms, to collaborate in creating a safe online environment for everyone.
FAQ
What are fraudulent loan apps?
Fraudulent loan apps are mobile or internet-based applications that promise easy and quick loans but actually exploit the desperation of borrowers by imposing high interest rates and unfair debt collection methods.
What are the consequences of not following the Indian government’s recommendations?
If social media and internet platforms fail to comply with the Indian government’s recommendations regarding the absence of advertisements for illegal loan and gambling apps, they will bear the consequences of not adhering to these guidelines.
Source
Article Title: Summary: The Indian government has issued a warning to…
The source of the article is from the blog mendozaextremo.com.ar