Reserve Bank Mulls Digital India Trust Agency To Combat Cyber Fraud

Image Credit: Reuters

New Delhi: In a bid to crack down on the rising incidents of cyber fraud, the Reserve Bank of India (RBI) is contemplating the establishment of a Digital India Trust Agency (DIGITA). This agency aims to tackle the proliferation of illegal lending apps by implementing stringent verification measures.

What Is DIGITA?

The proposed DIGITA would be responsible for verifying digital lending apps and maintaining a public register of verified apps. Apps without the 'verified' signature from DIGITA would be deemed unauthorized for law enforcement purposes. ()

What Is Objective Behind DIGITA?

The introduction of DIGITA is expected to enhance transparency and accountability within the digital lending sector, which has witnessed a surge in fraudulent activities and unethical practices. ()

By subjecting digital lending apps to thorough verification processes, DIGITA aims to instill trust among users.

RBI Collaboration With IT Ministry

The RBI has collaborated with the IT Ministry to share a list of 442 unique digital lending apps for whitelisting with Google. Furthermore, Google has taken proactive measures by removing over 2,200 digital lending apps from its app store between September 2022 and August 2023.

This move comes as Google updates its policy to only allow apps published by RBI-regulated entities or those in partnership with such entities.

Google Policy Change

The policy change by Google regarding the enforcement of loan apps on the PlayStore was made at the request of the RBI and the Department of Financial Services under the Finance Ministry.

This shift aims to curb the proliferation of unregulated digital lending apps and protect consumers from potential risks associated with them.

(With PTI Inputs)