RBI, in its fight against cyber frauds and fraud digital lending, is considering establishing a Digital India Trust Agency (DIGITA). This agency was established to stop the mushrooming of digital lending apps.
According to sources, the agency will ensure verification of all these apps and maintain a public registrar of all verified apps. Any app not verified by the agency will serve the law enforcement as a checkpoint while looking into financial crimes.
DIGITA
The Digital India Trust Agency is established to tackle with the increasing cases of digital fraud in the country. The RBI is setting up to increase measures and scrutiny against these online lending apps running without any license or verification.
With the introduction of DIGITA, apps need to verify themselves with the agency and a public registrar will be maintained.
As per several reports, DIGITA will investigate the loan lending apps and create a more transparent environment with the applications taking more accountability for their actions. The agency is expected to almost finish all frauds and malpractices.
Meanwhile, RBI has also shared with the Information Technology Ministry a list of 442 apps considered trustworthy with Google. Google has also changed their policy regarding lending apps as from now only apps partnered with RBI-affiliated entities or those published by them will be available on the Play Store.
This policy change was at the request of RBI and the Department of Financial Services under the Finance Ministry.
Lending App Fraud Crisis
An investigative report revealed that illegal instant loan apps are luring people with false promises and then trapping them in the loan trap. They used to provide loans instantly but ran away after taking the initial processing fee.
CloudSEK, the investigating agency revealed that Rs.37 lakhs were laundered by just one app and many of these funds were being sent to China from different channels.
More Chinese apps gained attention months ago because dating sites were used to catfish people. It was done by sharing personal info of people on their family or friend groups and then blackmailing people into giving money.
All these apps were running without any verification and authorization, the introduction of DIGITA will ensure that such frauds come to an end.
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