The Reserve Bank of India (RBI) is taking aim at illegal lending apps that harass borrowers with a potential new weapon: a verification agency called the Digital India Trust Agency (DIGITA).
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Here’s a breakdown of what this means for you:
- Safer Borrowing: DIGITA would verify digital lending apps, creating a public list of trustworthy options. Apps without DIGITA’s approval would be considered unauthorized.
- Fighting Fraud: This move aims to curb the rising number of fraudulent loan apps that exploit borrowers.
- Greater Transparency: A verification process would ensure more transparency and accountability within the digital lending sector.
- Collaboration is Key: The RBI is also working with the government to create a whitelist of approved apps for platforms like Google Play Store.
What This Means for Borrowers:
If you’re considering a loan through a mobile app, this is good news! DIGITA will help you identify legitimate lenders and avoid falling victim to scams. Remember, it’s always wise to do your research before borrowing money online.
The Fight Continues:
While this is a positive step, the battle against loan app scams is ongoing. Always be cautious when borrowing online and only use trusted platforms and verified lenders