RBI considers creating special agency to tackle illegal lending apps. How will DIGITAL operate?

In response to the growing concern over illegal lending apps and financial crimes in the digital space, the Reserve Bank of India (RBI) is contemplating the establishment of a Digital India Trust Agency (DIGITA). This move aims to verify digital lending apps and maintain transparency in the sector.

"RBI Considers DIGITA to Combat Illegal Lending Apps, Google Enforces Whitelisting on PlayStore"

Once operational, DIGITA will play a crucial role in vetting digital lending apps, ensuring compliance, and maintaining a public register of verified apps. Apps lacking the ‘verified’ mark from DIGITA will be considered unauthorized, providing law enforcement agencies with a valuable tool to combat financial crimes.

In a related development, Google has taken steps to address the proliferation of illegal lending apps on its PlayStore. Following requests from the RBI and the Department of Financial Services, Google now enforces a policy allowing only apps published by RBI-regulated entities or in partnership with such entities on its platform. This move comes after Google removed over 2,200 digital lending apps from its store between September 2022 and August 2023.

Additionally, the Indian government has taken action to rescue its citizens who were coerced into cyber fraud schemes in Cambodia. The Ministry of External Affairs has collaborated with Cambodian authorities to repatriate approximately 250 Indians, with ongoing efforts to dismantle the fraudulent networks responsible for these activities.

The initiatives by RBI, Google’s PlayStore policy enforcement, and the government’s efforts to combat cyber fraud highlight the collective commitment to safeguarding digital financial services and protecting consumers from fraudulent practices.

Sources By Agencies