DIGITAL INDIA TRUST AGENCY (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     1st April 2024        
Samadhaan

Context: As part of its efforts to curb growing cyber fraud, the Reserve Bank is considering establishing a Digital India Trust Agency (DIGITA) to stop the mushrooming of illegal lending apps.


Digital India Trust Agency (DIGITA)

  • About: It would be considered unauthorised for law enforcement purposes, serving as a crucial checkpoint in combating financial crimes in the digital domain.
  • Aim:  To tackle issues of fraud and unethical practices prevalent in India's digital lending sector.
  • Rise in Fraudulent Activities: Recent years have seen a surge in fraudulent activities within the digital lending sector in India.
  • Task of DIGITA: Once established, DIGITA would be tasked with vetting digital lending apps to ensure compliance.
  • Maintaining a Public Register: The proposed agency would aim to verify digital lending apps and maintain a public register of verified apps.
  • Promoting Transparency: A thorough verification process is expected to promote transparency and accountability in the digital lending sector, which has seen a rise in fraudulent activities and unethical practices.
  • Whitelisting Efforts: Google has collaborated with the RBI and the IT Ministry to whitelist legitimate apps, removing unauthorized ones from the Play Store.
  • Current Status: As of March 2024, DIGITA remains a proposed initiative, awaiting official announcement from the RBI.

Functions of DIGITA

  • Verification of Apps: DIGITA will vet digital lending apps to ensure compliance with RBI regulations.
  • Public Register Maintenance: The agency will maintain a public register of verified apps, aiding consumers in identifying legitimate options.
  • Combatting Financial Crimes: DIGITA's verification mark will serve as a crucial checkpoint in combating financial crimes in the digital domain.
Samadhaan