In response to the rising threat of cyber fraud, the Reserve Bank of India (RBI) is contemplating the establishment of a Digital India Trust Agency (DIGITA) aimed at curbing the proliferation of illegal lending apps.
Purpose of DIGITA
DIGITA will primarily focus on verifying digital lending apps and maintaining a public register of verified apps, providing a crucial tool in combating financial crimes in the digital domain.
Verification Process
Apps bearing the ‘verified’ signature of DIGITA will be considered authorized for law enforcement purposes. This verification process aims to enhance transparency and accountability within the digital lending sector.
Responsibilities of DIGITA
Once operational, DIGITA will be entrusted with the task of vetting digital lending apps, ensuring that only compliant and legitimate apps are available to users.
Multiple Choice Questions (MCQs):
- What is the primary purpose of establishing DIGITA by the Reserve Bank of India?
- A) To promote digital literacy among Indian citizens
- B) To facilitate the development of digital lending apps
- C) To curb the proliferation of illegal lending apps and combat cyber fraud
- D) To regulate the usage of social media platforms
- Which entity will be responsible for verifying digital lending apps under DIGITA?
- A) Ministry of Finance
- B) Reserve Bank of India
- C) Digital India Trust Agency (DIGITA)
- D) Google
- How will apps be considered authorized for law enforcement purposes according to the sources?
- A) If they are published by the RBI’s regulated entities (REs)
- B) If they are listed on Google PlayStore
- C) If they bear the ‘verified’ signature of DIGITA
- D) If they have a high user rating on app stores
- What action has Google taken in response to the surge in fraudulent digital lending apps?
- A) It has removed all digital lending apps from its app store.
- B) It has updated its policy regarding loan apps on the PlayStore.
- C) It has collaborated with DIGITA for app verification.
- D) It has imposed stricter regulations on app developers.