Digital India Trust Agency

Table of Contents☰

About Digital India Trust Agency

It will be responsible for stopping illegal lending apps from popping up.
It will enable the verification of these digital lending apps and will maintain a public register of these verified applications.
Any app which will not carry the “verified” tag of DIGITA, will be considered unauthorised.
Significance: This will create an important and much-needed checkpoint in the fight against online financial fraud.

What is digital lending?

It is a remote andautomated lending process, largely by use of seamless digital technologies.
It involves lending through web platforms or mobile apps, utilising technology in customer acquisition, credit assessment, loan approval, disbursement, recovery and associated customer service.
It generally involves three parties – a lender, a lending service provider (including a digital lending platform) and a borrower.
It includes products like Buy Now, Pay Later (BNPL), which is a financing option (or simply a short-term loan product).

It allows one to buy a product or avail a service without having to worry about paying for it immediately.

Q1: What is the role of RBI?

It acts as a regulator and supervisor of the overall financial system. This injects public confidence into the national financial system, protects interest rates, and provides positive banking alternatives to the public.

Source: RBI mulls to set up Digital India Trust Agency to check illegal lending apps