Digital India Trust Agency (DIGITA) to check Illegal Lending Apps

Why in the news?

To address the rising threat of cyber fraud, the Reserve Bank of India (RBI) is planning to establish a Digital India Trust Agency (DIGITA).

About Digital India Trust Agency (DIGITA)

DIGITA aims to tackle the proliferation of illegal lending apps by verifying and maintaining a register of authenticated digital lending platforms.

Role of DIGITA:

1. Public Register: It will maintain a public register of verified apps, providing transparency and aiding law enforcement agencies in identifying unauthorised platforms.
2. Verification Hub: It will serve as a central agency for vetting digital lending apps, ensuring their authenticity and compliance with regulations.

Regulatory Implications

• Apps lacking the ‘verified’ signature from DIGITA will be deemed unauthorized, enhancing law enforcement efforts against financial crimes in the digital domain.
• Verification processes will promote transparency and accountability within the digital lending sector, curbing fraudulent activities.

Progress made so far

• The RBI has shared a list of 442 digital lending apps with the IT Ministry for whitelisting with Google.
• Google has removed over 2,200 digital lending apps from its PlayStore, aligning with RBI and DFS directives to only allow apps from regulated entities or their partners.