Centre directs social media subsidiaries to ban ads of illegal betting, loan apps

NEW DELHI — The Centre on Wednesday said that it has directed social media subsidiaries and online platforms to actively prohibit and remove illegal loan and betting apps under the existing IT Rules.

On Tuesday, the Ministry of Electronics and Information Technology (MeitY) issued an advisory to all digital intermediaries to actively comply with the existing IT rules, particularly in the context of misinformation and deepfakes. Within this advisory, the IT Ministry further underscored the obligation of intermediaries to ban illegal loan and betting apps.

“Intermediaries/platforms should take additional measures to not permit any advertisements of illegal loan and betting apps having potential to scam and mislead the users, the consequences of which will be the sole responsibility of the intermediaries/platforms,” according to the advisory.

This advisory came at the backdrop of the government’s decisive efforts to combat threats such as deepfakes, misinformation, and the proliferation of illegal loan and betting apps, reflecting a commitment of creating a safe and trusted internet for all digital citizens.

In a meeting convened in October, MeitY and the Reserve Bank of India (RBI) discussed the necessary actions against illegal betting apps. During the meeting, the IT Ministry had urged the RBI to devise a more comprehensive Know Your Customer (KYC) process for banks.

This proposed KYC process, termed ‘Know Your Digital Finance App’ (KYDFA), is envisioned to enhance the ability to trace and address rogue loan apps effectively. This recommendation was officially communicated to the Department of Financial Services (DFS) and RBI on October 13.

Union Minister of State for Electronics and IT, Rajeev Chandrasekhar said on Wednesday that one of the areas “we are now cracking down on is advertising of fraudulent loan apps that many platforms are carrying.”

“We have, through yesterday’s advisory, made it clear that no intermediary can carry advertisements of fraudulent loan apps because it will be misleading and exploit people who are using the internet,” said the minister.

The advisory also stressed the importance of robust grievance redressal mechanisms employed by intermediaries.

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