CURRENT AFFAIRS

About Digital India Trust Agency (DIGITA) Ias Banenge

Context:

The Reserve Bank of India is considering establishing a Digital India Trust Agency (DIGITA) to combat cyber fraud and illegal lending apps.

Relevance:

Facts for Prelims

READ MORE- Current Affairs 02 April 2024

Dimensions of the Article:

  1. About Digital India Trust Agency (DIGITA)
  2. Understanding Digital Lending

About Digital India Trust Agency (DIGITA)

Role and Responsibilities:

  • Tasked with preventing the emergence of illegal lending apps.
  • Facilitates the verification of digital lending applications and maintains a public register of these verified apps.

Verification System:

  • Apps verified by DIGITA will carry a “verified” tag.
  • Any app lacking this verification will be deemed unauthorized.

Significance:

  • Establishes a crucial checkpoint in combating online financial fraud.

Understanding Digital Lending

Definition:

  • Digital lending refers to a remote and automated lending process primarily driven by advanced digital technologies.

Process and Parties Involved:

  • Lending occurs through web platforms or mobile apps, leveraging technology across various stages such as customer acquisition, credit assessment, loan approval, disbursement, recovery, and customer service.
  • Typically involves three entities: a lender, a lending service provider (including digital lending platforms), and a borrower.

Products and Features:

  • Includes innovative financial products like Buy Now, Pay Later (BNPL).
  • BNPL offers a financing option or short-term loan, allowing consumers to purchase products or avail services without immediate payment concerns.

-Source: Indian Express


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