Digital India Trust Agency (DIGITA) to be set up by RBI
Banking and Finance
5 min read
The Reserve Bank of India (RBI) is considering establishing the Digital India Trust Agency (DIGITA) as a new tool to combat cybercrime.
- This proposed agency focuses on the approval of legal applications and the growth of publicly registered illegal loan applications.
DIGITA: A Central Hub for Verification
Sources close to RBI suggest that DIGITA would serve as a central hub for reviewing digital loan apps to ensure regulatory compliance and ethical operations. DIGITA will be responsible for verifying that the apps meet the following criteria:
- DIGITA would verify digital lending apps to ensure that they comply with RBI regulations and guidelines. Apps without DIGITA's verification may be penalised.
- Sources suggest that law enforcement may consider them unauthorized. This will be a major step towards tackling financial scams and protecting borrowers in the digital lending sector.
- The agency would maintain a public list of verified digital lending apps, which would help consumers identify legitimate apps easily.
- DIGITA world mark apps that lack verification as unauthorised, which can be used by law enforcement agencies to combat financial crimes in the digital domain. This would serve as a crucial checkpoint in preventing financial crimes.ly verified apps would receive a "DIGITA - approved" seal, making them easily identifiable for borrowers.
RBI collaborated with Google
- The Reserve Bank of India (RBI) has taken action to tackle the issue of illegitimate loan apps without waiting for DIGITA.
- As part of its collaboration with the government, the RBI has shared a list of 442 genuine loan apps with the IT Ministry for whitelisting on app stores such as Google Play. This partnership has already resulted in the removal of more than 2,200 suspicious lending apps by Google over the past year.
- The aim of this joint effort is to create a safer and more transparent digital lending ecosystem for Indian consumers.
What is cyber crime?
Cybercrime refers to any crime that involves a computer as a medium or tool for committing the crime.
In India, according to the Seventh Schedule of the Constitution, cybercrime falls under the State List.
It encompasses all illegal or unauthorized activities that exploit technology to perpetrate various types of crimes.
Government initiatives to tackle cyber crimes in India:
Indian Cyber Crime Coordination Center (I4C): The center coordinates nationwide efforts to combat all forms of cybercrime.
CyTrain Portal: A MOOC platform for capacity building of police, judicial and prosecutors on cyber crime investigation, forensics and prosecution.
Citizen Financial Cyber Fraud Reporting and Management System: It is a toll-free helpline that facilitates immediate reporting of financial frauds and cyber complaints online.
National Cyber Crime Reporting Portal: A platform for reporting cyber crimes with focus on women & children.
