NEWS – The Reserve Bank of India (RBI) is considering establishing a Digital India Trust Agency (DIGITA) as part of its efforts to combat cyber fraud and illegal lending apps

HIGHLIGHTS

• Purpose of DIGITA:
  • DIGITA aims to curb the proliferation of illegal lending apps and enhance cybersecurity in the digital lending sector.
• Verification and Public Register:
  • DIGITA will verify digital lending apps and maintain a public register of verified apps.
  • Apps without DIGITA’s ‘verified’ signature may be deemed unauthorized for law enforcement purposes.
• Role in Law Enforcement:
  • DIGITA’s verification status will serve as a crucial checkpoint to combat financial crimes in the digital domain.
• Responsibilities of DIGITA:
  • Once established, DIGITA will be responsible for vetting digital lending apps and ensuring compliance with regulatory standards.
• Transparency and Accountability:
  • Thorough verification processes by DIGITA will promote transparency and accountability within the digital lending sector.
• Collaboration with IT Ministry and Google:
  • The RBI has shared a list of unique digital lending apps with the IT Ministry for whitelisting with Google.
  • Google has removed over 2,200 digital lending apps from its app store based on updated policies at the request of RBI and the Department of Financial Services.
• Updated Policy by Google:
  • Google’s policy change restricts loan apps on the PlayStore to those published by RBI-regulated entities or in partnership with such entities.