Digital India Trust Agency (DIGITA)

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Context

• The Reserve Bank of India (RBI) is contemplating the establishment of a Digital India Trust Agency (DIGITA) as a measure to combat the rising cyber fraud in the digital lending sector.

Purpose of DIGITA

• DIGITA aims to verify digital lending apps and maintain a public register of verified apps to prevent the proliferation of illegal lending apps.
• Apps lacking the 'verified' signature of DIGITA would be deemed unauthorized for law enforcement purposes, acting as a crucial checkpoint against financial crimes in the digital domain.

Responsibilities of DIGITA

• Once established, DIGITA will be responsible for vetting digital lending apps to ensure compliance with regulatory standards.

Need for Transparency and Accountability

• A thorough verification process by DIGITA is expected to promote transparency and accountability within the digital lending sector, which has witnessed a surge in fraudulent activities.

Collaboration with IT Ministry and Google

• The RBI has shared a list of 442 unique digital lending apps with the IT Ministry to whitelist with Google.
• Google has removed over 2,200 digital lending apps from its app store between September 2022 to August 2023.
• Google's policy update allows only apps published by RBI-regulated entities or those in partnership with such entities, following requests from the RBI and the Department of Financial Services.

PRACTICE QUESTION Q. What is SCORES 2.0 recently launched by SEBI? Explain its significance in the securities market and highlight its key features aimed at enhancing investor complaint redressal.