Adversitement
Reserve Bank Mulls Establishment of DIGITA to Combat Cyber Fraud
Published On : 2024-03-31T14:51:32+0530 [ IST ] |
Author : Mayur_Tembhare
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India :
In a bid to tackle the rising threat of cyber fraud and illegal lending apps, the Reserve Bank of India (RBI) is contemplating the establishment of a Digital India Trust Agency (DIGITA). Here are the key developments:
- Purpose of DIGITA: The proposed Digital India Trust Agency (DIGITA) aims to curb the proliferation of illegal lending apps and enhance cybersecurity measures in the digital lending sector. DIGITA would be tasked with verifying digital lending apps and maintaining a public register of verified apps.
- Authorized Verification: Apps carrying the 'verified' signature of DIGITA would be recognized as legitimate and authorized for law enforcement purposes. This measure is intended to serve as a crucial checkpoint in combating financial crimes and protecting consumers from fraudulent activities in the digital realm.
- Transparency and Accountability: The verification process conducted by DIGITA seeks to instill transparency and accountability within the digital lending sector. With a surge in fraudulent activities and unscrupulous practices, there is a pressing need to establish robust mechanisms for verifying the authenticity of digital lending apps.
- Collaboration with Google: The Reserve Bank of India has collaborated with Google to address the issue of unauthorized digital lending apps. Google has removed over 2,200 digital lending apps from its app store between September 2022 and August 2023. The search giant has updated its policy regarding the enforcement of loan apps on the PlayStore, allowing only those apps published by RBI-regulated entities or in partnership with such entities.
- Policy Change: Google's policy change regarding the enforcement of loan apps on the PlayStore was initiated at the request of the Reserve Bank of India (RBI) and the Department of Financial Services (DFS) under the Finance Ministry. This collaboration underscores the joint efforts to combat cyber fraud and protect consumers from illegal lending practices.
The establishment of DIGITA and collaboration with Google represent significant steps towards enhancing cybersecurity and promoting financial integrity in the digital lending ecosystem. These initiatives reflect the authorities' commitment to safeguarding the interests of consumers and maintaining the integrity of financial systems in the digital age.
Source : Business Line
Tags : cyber fraud , financial crimes , illegal lending apps , digital lending sector , DIGITA , policy enforcement , Google PlayStore , RBI-regulated entities , Reserve Bank of India ,
Summary : The Reserve Bank of India (RBI) is considering the creation of a Digital India Trust Agency (DIGITA) to counter the proliferation of illegal lending apps and combat cyber fraud. DIGITA would be responsible for verifying digital lending apps and maintaining a public register of verified apps. Apps without DIGITA's verification would be deemed unauthorized for law enforcement purposes, bolstering efforts to curb financial crimes in the digital domain. The move comes amid a surge in fraudulent activities in the digital lending sector, with Google also taking action to remove unauthorized digital lending apps from its app store.
Adversitement