Digital India Trust Agency on anvil
RBI plans mechanism to check mushrooming of illegal lending apps
RBI directs banks to step up hassle-free loans to Self Help Groups
New Delhi: As part of its efforts to curb growing cyber fraud, the Reserve Bank of India (RBI) is considering establishing a Digital India Trust Agency (DIGITA) to stop the mushrooming of illegal lending apps.
The proposed agency will enable verification of digital lending apps and maintain a public register of verified apps, sources said. Apps not carrying the ‘verified’ signature of DIGITA should be considered unauthorised for the purpose of law enforcement, sources said, adding that this will serve as a pivotal checkpoint in the fight against financial crimes in the digital realm. DIGITA, once in place, would be entrusted with the responsibility of vetting digital lending apps, they noted.
According to sources, a thorough verification process would help instil greater transparency and accountability within the growing digital lending sector, which has witnessed a surge in fraudulent activities and unscrupulous practices in recent times. Meanwhile, the Reserve Bank of India has shared a list of 442 unique digital lending apps with the IT Ministry to whitelist with Google. Besides, Google has removed over 2,200 digital lending apps (DLAs) from its app store from September 2022 to August 2023.
