• UGI USER
  • Dec 28, 2023
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ONLINE PLATFORM WARNED FOR MISLEADING LOAN APPS

Why in the News?

  • The Ministry of Electronics and IT (MeitY) instructs social media platforms like Facebook and Instagram, and Google to take immediate action against fraudulent loan app advertisements.
  • Consequences of hosting such ads will be the sole responsibility of the platforms, warns the ministry.
Source:The Hindu

What are Fake Loan Apps?

  • Fake Loan Apps are unauthorized digital lending platforms that are illegal.
  • These platforms target low-income individuals, offering loans from Rs.1,000 to Rs.1 lakh.
  • They falsely promise instant and hassle-free loans without credit checks, documentation, or collateral.

About the Government Action:

  • Proposed amendments to Rule 3(1)(b) of the Information Technology (IT) Rules target barring intermediaries from hosting deceptive loan app ads.
  • Platforms may lose legal immunity if amendments are enforced.