Authorized digital lending app repository to be created by RBI, ensuring safe loans 📱

Regulation against Fraudulent Digital Lending Apps in India 🛡️

In light of increasing complaints about fraudulent digital lending applications, the Reserve Bank of India (RBI) recently announced the establishment of a public repository dedicated to authorized loan apps in India. This initiative aims to address the rising concerns surrounding unauthorized digital lending apps and promote a secure digital lending ecosystem in the country. During the RBI Monetary Policy Committee’s decisions announcement on August 8, 2024, RBI Governor Shaktikanta Das unveiled this new development.

How Will the Repository Function? 🔄

– Regulated entities will report and update information about their digital lending apps in the public repository.
– This measure will assist consumers in identifying unauthorized lending apps.
– Adhil Shetty, CEO of BankBazaar.com, praised the RBI’s efforts to combat fake loan apps by introducing the repository.
– Only regulated entities will have the authority to report and update information in the repository.
– Unregulated or non-partnered digital lending apps will not be included in the repository, enhancing its reliability and security.

Establishment of DIGITA for Verification 🛡️

– RBI is planning to establish DIGITA, a new regulatory body responsible for vetting digital lending apps and maintaining a public register of verified applications.
– Apps without DIGITA’s verification will be deemed unauthorized for law enforcement purposes.
– The creation of DIGITA will be a crucial step in combating financial crimes in the digital space.
– This regulatory body will play a vital role in ensuring transparency and accountability in the digital lending sector.

Recent Developments in the Digital Lending Sector 💻

– The central bank shared a list of 442 unique digital lending applications with the IT Ministry earlier this year, leading to a review of these apps for customer safety.
– Google has taken action by removing more than 2,200 digital lending apps from its app store between September 2022 and August 2023.