The Reserve Bank is thinking about creating a Digital India Trust Agency (DIGITA) to stem the spread of illicit lending apps as part of its efforts to combat the rising cybercrime. The proposed organization would make it possible for digital lending apps to be vetted and keep a public list of those that have.
According to reports, law enforcement should see apps without DIGITA’s “verified” signature as unapproved. This will be a crucial milestone in the battle against financial crimes committed online.Once established, DIGITA would be tasked with the duty of screening digital loan applications.
An extensive verification procedure would contribute to establishing more accountability and transparency in the expanding digital lending industry, which has recently seen an increase in dishonest behaviour and fraudulent activity.
A list of 442 distinct digital lending apps has been shared by the Reserve Bank of India with the IT Ministry for Google to whitelist. In addition, between September 2022 and August 2023, Google withdrew approximately 2,200 digital lending apps (DLAs) from its app store.
The search engine giant has modified its guidelines for the PlayStore’s loan app enforcement. As a result, only applications released by regulated companies (REs) or those collaborating with REs are permitted. The Reserve Bank of India (RBI) and the Department of Financial Services (DFS), which is part of the Finance Ministry, requested that Google amend its policy.